The Hindu 06.07.2017
SPV to be set up soon for smart city project
Landmark skyline:A view of Tiruchi cityPhoto: A. Muralitharan
It is mandatory for implementing the project
The
Tiruchi City Corporation has begun the process of forming a Special
Purpose Vehicle (SPV) for executing the Smart City project.
As per
the policy documents of Smart Cities Mission of the Ministry of Urban
Development, it is mandatory to float a SPV for implementing the project
from planning to execution. It will plan, appraise, approve, release
funds, implement, manage, operate, monitor and evaluate the smart city
development projects.
The SPV will have a full time Chief
Executive Officer with the nominees of State and Central governments,
and it has to be registered with the Companies Act. Besides using the
government grants for infrastructure building, the SPV will have powers
to raise private equity and funds for the projects. These could be
executed through joint ventures, subsidiaries and public-private
partnership.
It is learnt that senior officials of Tiruchi
Corporation visited Chennai on Tuesday for a discussion with the senior
officials of the Commissionerate of Municipal Administration to evolve
the modalities for forming the Special Purpose Vehicle.
N. Ravichandran, Commissioner cum Special Officer, Tiruchi Corporation, told The Hindu
that he had received a detailed instruction manual for forming SPV.
Steps had been initiated to register the SPV under the Companies Act.
A
senior IAS officer would be the Chairman of SPV. Tiruchi Corporation
Commissioner would be the Managing Director. The Central Government
would also nominate a person for it. Similarly, a number of persons, who
were directly associated with the Corporation, would be made as
members.
Mr. Ravichandran said a clear picture on formation of SPV
would emerge within a two weeks. Formation of SPV would be completed
within July. A seven sq km area in and around Rockfort temple would be
the focus of area development plan of the Smart City project. It would
address all issues including traffic congestion, parking, open
drainages, roads and others. Chathiram Bus Stand and Gandhi Market would
also be remodelled.
The Government had asked to re-modify the
Smart City proposal with some changes. The re-modified plan would be
submitted to the State government within 15 days.