Funds worth Rs 1.94 bn for kick-starting the Pune Smart City project have been released by the Union government and it intimated that to the Pune Municipal Corporation (PMC).
The Centre has said the funds have been sanctioned on the condition that the amount is to be used by the Pune Smart City Development Corporation Ltd for implementation of the project and be kept in a separate grant funds account created exclusively for the mission.
An equal amount is to be contributed by the state or the local civic body within seven days, the communication said, adding that the money should be utilised strictly in accordance with guidelines of the mission.
The funds should not be used for setting up the special purpose vehicle (SPV) or for internal use. The SPV has to furnish utilisation certificate in respect of the funds released at an earlier date, it said.
The funds should not be used for purchasing vehicles and equipments, construction and maintenance of buildings, creation of posts, payment of salary of SPV staff, the communication further clarified.
However, the SPV awaits its first meeting of the board of directors as the state government has asked to wait for its nod.
The state government is also supposed to appoint two independent directors on the board which is yet to be done.
“The operations of the SPV would begin only after the state government is allowed to hold the meeting of the board of directors and appoint the two independent directors,” said a civic official.