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“Royal state” and “Heart” of India composed SPVs for Smart Cities

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As per the statement of Ministry of Urban Development, Rajasthan and Madhya Pradesh have leading the charts in establishing the Special Purpose Vehicles (SPV) for the implementation of smart city plans.
(Minister of Urban Development – Venkaiah Naidu)

  • The Ministry of Urban Development will infuse 200 crore for the 20 selected cities only after SPVs are set up.

Royal state and Heart of India composed SPVs for Smart CitiesWhere SPVs have been set up?
SPVs have been set up for five cities which include Jabalpur, Indore and Bhopal in Madhya Pradesh and Jaipur and Udaipur in Rajasthan.

  • Madhya Pradesh has set up a 12-member SPV for each of the three cities.
  • Rajasthan has set up an 11-member SPV for Jaipur and a 13-member body for Udaipur.
  • The remaining 15 cities will form SPVs in the next two weeks.

What are SPVs?
Special Purpose Vehicles (SPV) is necessitated to be initiate under Smart City Mission Guidelines to ensure timely and efficient execution of plans. They have to be registered under the Companies Act, 2013.

  • SPVs 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 Government.
  • These vehicles will approve, sanction and execute the projects besides mobilising resources from various sources.

Keys:
Rajasthan CM – Vasundhara Raje
Rajasthan Governor – Kalyan Singh
Madhya Pradesh CM – Shivraj Singh Chouhan
Madhya Pradesh Governor – Ram Naresh Yadav