Madhya Pradesh and Rajasthan have taken the lead in setting up Special Purpose Vehicles (SPVs) for the implementation of Smart City Plans that have won in the first round of competition for Smart Cities.
SPVs have been set up for Jabalpur, Indore and Bhopal in Madhya Pradesh and Jaipur and Udaipur in Rajasthan.
These cities have been among the first batch of 20 winners of Smart City Challenge Competition announced on Jan 29, 2016.
The SPVs for the remaining 15 cities will be formed in the next two weeks. Union Urban Ministry will release Rs.20 billion for each of the 20 selected cities only after SPVs are set up.
The SPVs to be registered under the Companies Act 2013 will have 50:50 equity by the states and respective urban local bodies. Private equity is also allowed but the management control will rest with the governments.
SPVs are required to be set up under Smart City Mission Guidelines to ensure timely and efficient execution of plans with operational freedom. They can approve, sanction and execute the projects besides mobilising resources from various sources.
Madhya Pradesh has set up a 12-member SPV for each of the three cities. Respective District Collectors will be the Chairmen of the Board and Municipal Commissioners as Executive Director.
Rajasthan has set up a 11 Member SPV for Jaipur and a 13-member body for Udaipur. Principle Secretary (Local Self Government) is the Chairman in both the cases. Mayor will be the Vice-Chairman and Municipal Commissioner will the Chief Executive Officer till a regular CEO is appointed.
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