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Smart City SPV awaits state nod to start operations

The Union government had urged the PMC to form an SPV and register it before March 31 to get the assured funds for implementing the projects.

By: Express News Service | Pune | Updated: April 6, 2016 12:01:47 am

RANKED SECOND in the contest organised by the Centre for developing probable smart cities, the Pune Municipal Corporation has speeded up the administrative process of setting up special purpose vehicle (SPV) for implementing smart city projects. However, its operations are yet to kickstart as the state government has put on hold the first meeting of the board of directors of SPV, even as it awaits the assured funds under the mission.

The Union government had urged the PMC to form an SPV and register it before March 31 to get the assured funds for implementing the projects. Accordingly, the PMC got the SPV Pune Smart City Development Corporation Ltd registered with the Register of Companies on March 23.

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“It is necessary to hold the first meeting of board of directors of SPV within one month of its formation. Therefore, the first meeting was scheduled on April 2 and was communicated to the state government but it asked the PMC to postpone the meeting till further instructions,” said Anil Pawar, deputy municipal commissioner.

The agenda for the first meeting was introduction of directors, discussion on appointing staff and other important things to start the functioning of SPV. “Efforts are being undertaken to shortlist the office space for SPV. The final decision on it would be taken by the board,” he said.

As for the funds of Rs 194 crore assured to PMC by the end of financial year 2015-16, he said, the PMC has not relieved any funds till now. “We received an oral communication that the funds would soon be transferred to the SPV.”

There would be 15 directors in the company that would include six elected representatives from PMC. From the state government, directors would include Pune divisional commissioner, Pune police commissioner, town planning office Pune region and Managing Director of PMPML. There will be one director representing the Centre and two independent directors. The chief executive officer of the company too would be director while the chairman of the company would be the municipal commissioner.

The state government has appointed the additional municipal commissioner of PMC, Prerna Deshbhratar, as the chief executive officer. However, the state government is yet to appoint the two independent directors for the SPV. “PMC would be recommending names as per the smart city rules and the state government would take a decision on it,” Pawar said.

In its smart city plan, the PMC has estimated project cost of Rs 3,480 crore– Rs 1,035 crore for pan city and Rs 2,445 crore for development of Aundh-Baner.

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