17 of 20 smart cities ready with SPVs for project

Navadha Pandey New Delhi | Updated on January 20, 2018


New Delhi, Pune, Kakinada to hire professionals to head special purpose vehicles

As the Ministry of Urban Development aims to kick-start smart city projects by June 25, marking the first year of launch of the flagship mission, as many as 17 cities out of the 20 selected in the first round, have already incorporated special purpose vehicles (SPVs).

“Only New Delhi Municipal Corporation, Chennai and Coimbatore are yet to set up SPVs. They are likely to do so by next week,” a senior official in the Ministry of Urban Development told BusinessLine.

Under the mission, the SPV, which is to be registered under the Companies Act, 2013, will have 50:50 equity by the State and the respective urban local body. Private investments are also allowed but the management control will rest with the government only.

Bhubaneshwar which topped the first batch of 20 smart cities, was also the first to get its SPV kick-started.

“Out of the 17 SPVs formed, most have the State Chief Secretary or Principal Secretary at the helm. This will ensure easier implementation of projects and that things fall in place quickly,” the official said.

Moreover, three cities – Pune, Kakinada, and New Delhi Municipal Corporation – are looking to hire professionals from the industry to head the SPVs, the source added.

The first 20 cities to bag the ‘smart city’ tag were Bhubaneshwar, Pune, Jaipur, Surat, Kochi, Ahmedabad, Jabalpur, Visakhapatnam, Solapur, Davangere, Indore, New Delhi Municipal Corporation, Coimbatore, Kakinada, Belgaum, Udaipur, Guwahati, Chennai, Ludhiana and Bhopal.

Financial support

Operated as a centrally sponsored scheme, the Centre has proposed financial support of ₹48,000 crore over five years – on an average ₹100 crore per city per year. States have to match this amount.

The project intends to promote adoption of smart solutions to enhance the quality of urban life and provide a clean and sustainable environment.

Published on June 06, 2016

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