For Smart City Plans Implementation of Madhya Pradesh, Rajasthan Has Setup Spv [ Current Affairs ]

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For the implementation of Smart City Plans Madhya Pradesh and Rajasthan Government have set up Special Purpose Vehicles (SPV). SPVs have been set up for five cities: Jabalpur, Indore and Bhopal from Madhya Pradesh; Jaipur and Udaipur in Rajasthan.

All these five cities are belongs to the first batch of 20 winner of Smart City Challenge Competition which was held by the Union Ministry of Urban Development.

For this each selected 20 cities Ministry will release 200 crore rupees only after SPVs are set up.

Smart Cities Project

  • The Smart Cities mission is a of Prime Minister Narendra Modi has launched this domestic project with the aim to improve infrastructure and service delivery of selected cities by implementing Information and Communication Technology (ICT) and e-governance.
  • And in the development of Smart Cities Urban local Bodies (ULBs) and State Governments will play a key supportive role.

Special Purpose Vehicles (SPV)

  • Under the Companies Act, 2013 SPVS are register to ensure timely, cost-effective and efficient execution of smart city projects with operational freedom.
  • This SPV confirms the qualities of the outcomes of these smart city projects are benchmarked against global standards.
  • The states and respective urban local bodies will hold 50: 50 SPVs.
  • The management control by the Governments but Private equity is also allowed.
  • CEO will be head of the SPVs and shall approve, sanction and execute the projects besides mobilizing resources from various sources.

- Published on: February 23, 2016