- A Special Purpose Vehicle (SPV) will have to be set up now.
- Belagavi will get Rs. 100 crore per city per year for the next FIVE years.
- Already Rs.2 crore were alloted for the preparation of the Smart city planning.
- SPV will be headed by full-time CEO (fixed term of three years), with nominees of Central Government, State Government and ULB on its Board.
- All funds from the centre would be routed through this SPV only
- SPVs will plan, appraise, approve, release funds, implement, manage, operate, monitor and evaluate the Smart City development projects.
Central Government proposes to give financial support to the Mission to the extent of Rs. 48,000 crores over five years i.e. on an average Rs. 100 crore per city per year. The additional resources will have to be mobilized by the State/ ULBs from external/internal sources.
Under this scheme, each city is required to establish a Special Purpose Vehicle (SPV) having flexibility regarding planning, implementation, management and operations. The body will be headed by a full-time CEO, with nominees of Central Government, State Government and ULB on its Board. The SPV will be a limited company incorporated under the Companies Act, 2013 at the city-level, in which the State/UT and the Urban Local Body (ULB) will be the promoters having equity shareholding in the ratio 50:50.
Funds provided by the Government of India in the Smart Cities Mission to the SPV will be in the form of tied grant and kept in a separate Grant Fund. These funds will be utilized only for the purposes for which the grants have been given and subject to the conditions laid down by the MoUD.
The key functions and responsibilities of the SPV are to:
i. Approve and sanction the projects including their technical appraisal.
ii. Execute the Smart City Proposal with complete operational freedom.
iii. Take measures to comply with the requirements of MoUD with respect to the implementation of the Smart Cities programme.
iv. Mobilize resources within timelines and take measures necessary for the mobilisation of resources.
v. Approve and act upon the reports of a third party Review and Monitoring Agency.
vi. Overview Capacity Building activities.
vii. Develop and benefit from inter-linkages of academic institutions and organizations.
viii. Ensure timely completion of projects according to set timelines.
ix. Undertake review of activities of the Mission including budget, implementation of projects, and preparation of SCP and co-ordination with other missions / schemes and activities of various ministries.
x. Monitor and review quality control related matters and act upon issues arising there of.
xi. Incorporate joint ventures and subsidiaries and enter into Public Private Partnerships as may be required for the implementation of the smart cities programme
xii. Enter into contracts, partnerships and service delivery arrangements as may be required for the implementation of the Smart Cities Mission.
xiii. Determine and collect user charges as authorised by the ULB
xiv. Collect taxes, surcharges etc. as authorised by the ULB