Post News Network
Bhubaneswar: There are barely 40 days left for the financial year to end but the state government has not yet set up a special purpose vehicle (SPV) to execute Smart City projects in Bhubaneswar. This has led to a delay in the receipt of central funds.
Soon after the names of the top 20 cities for the Smart City mission were announced, the Centre asked the
state government to set up the SPV as soon as possible, according to
sources in the housing and urban development (H&UD) department. The Union government has also given guidelines for the formation of the SPV, said officials.
“The SPV is essential for receiving funds from the Centre. Unless the SPV is set up, the state will not get any funds under the mission,” an official said.
“The formation of the SPV is under active consideration of the government. The powers and responsibilities of different functionaries of the company are being chalked out and very soon it will be formed,” said Smart City mission director SK Ratho.
The SPV to be formed by the Bhubaneswar Municipal Corporation (BMC) will work as a company.
It will have a full-time chief executive officer, with nominees of the central government, state government and the city on its board. The company will have 10 government directors and five independent directors.
The SPV will have powers to plan, appraise, approve, release funds, implement, manage, operate, monitor and evaluate projects to be undertaken.
Some senior bureaucrats of the state government are lobbying hard to become the head of the company, according to sources.