PUNE: The special purpose vehicle for executing projects under the Smart Cities Mission was registered on Wednesday.
Christened `Pune Smart City Development Corporation Limited’, it has seven stakeholders. Of them, six are from the Pune Municipal Corporation (PMC), including the mayor, standing committee chairman, leader of the House, leader of opposition, PMC commissioner and the additional commissioner. The divisional commissioner would be the seventh stakeholder -a state representative.
“After efforts of around eight months, the company has formed and it will start working shortly . The details of he roles and responsibilities and how the company will work will be finalized in a meeting soon,” said Kunal Kumar, the commissioner of PMC.
The company has 15 directors. Among them, six are from PMC, including the mayor, standing committee chairman, leader of the House and leader of opposition. They will select two more elected representatives, representing the parties.
As the state’s representatives, the director’s board will include the divisional commissioner, police commissioner, joint director of town planning, managing director and he chairman of Pune Mahanagar Parivahan Mahamandal Limited.
After the selection of Smart Cities, the Union government in January had asked them to start the process of constituting the special purpose vehicle. The process faced hurdles as elected members of some of the municipal corporations had demanded a bigger role in the SPV .
The PMC corporators demanded to make the mayor its chairman. But the state government did not entertain hem. The commissioner of PMC will head the company . The SPV will plan, appraise, approve and release funds for the Smart City development projects. It will implement, manage, operate, monitor and evaluate the projects as well. It will be headed by a fulltime CEO and have nominees of the central and state governments as well as the municipal corporation on its board.
The state and municipal corporations will ensure that a dedicated and substantial re venue stream is made available to the SPV to make it self-sustainable and help evolve its own credit worthiness to raise additional resources from the market.
Credits ET Realty