Formation of the special purpose vehicle (SPV), key to kick-start the Smart City project, will be completed by the end of next week, officials in Greater Chennai Corporation have confirmed.
The SPV will implement the ambitious project the Union ministry of urban development plans to kick off across the country on June 25. The municipal corporations of Chennai, Coimbatore and New Delhi are yet to form the SPV, the first step in the programme, among the 20 cities selected in first phase.
After the model code of conduct for the May 16 assembly election kicked in on March 4 and temporarily stalled the project, Chennai and Coimbatore applied for an extension. About 10 days ago, the Tamil Nadu government passed an order for the SPV to be formed. Both cities have applied for registration and are awaiting approval. The SPV for the city, Chennai Smart City Limited, will be registered as a company under the Companies Act, 2013.
“We are on the job, fast-tracking the process,” said a senior government official. “The government has to clear the Articles of Association (a document that specifies the purpose of a company’s operations and the responsibility of its members).” Every city has to draft its own articles of association which can be modelled on a sample set by the Union urban development ministry.
Chennai Smart City Limited will be headed by the corporation commissioner and comprise eight heads from various government bodies and two independent professionals. Headquartered at Amma Maaligai, the annexe of Ripon Buildings, it will be jointly promoted by the Tamil Nadu government and Greater Chennai Corporation who will have 50:50 equity share holding.
The 1,366-crore project in thye city will be launched in the commercial hub of T Nagar with development plans scheduled to be executed before 2020.
Source: ET Realty
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