SPVs approved for Jammu and Srinagar Smart City project

Insert

The Union Ministry of Housing and Urban Development has approved the proposal for sanctioning of two Smart Cities Projects in Jammu and Srinagar and accorded for constitution of a State Level Advisory Committee and Special Purpose Vehicles (SPVs) for the implementation of the Smart City Development Projects under the Smart City Mission of Government of India.

According to separate order, the Special Purpose Vehicles (SPVs) for Jammu and Srinagar Cities will be headed by Administrative Secretary, Housing and Urban Development Department as Chairman, comprising of respective Board of Directors and Independent Directors (to be appointed by the Minister for Housing and Urban Development).

These SPVs shall perform the function of approving and sanctioning the projects, including their technical appraisal, execute the Smart City proposal with complete effective freedom, take measures to comply with the requirements of MoUD with respect to the implementation of the Smart Cities Programme, approve and act upon the reports of a third party review and monitoring agency, develop and benefit from inter-linkage of academic institutions and organizations and ensure timely completion of projects according to time period.

In addition, the SPVs assess various activities of the Mission like sourcing the budget of the projects, coordination with other ministries and monitor various schemes and activities and maintain the quality.

The Jammu Smart City Limited will be headquartered at Jammu Municipal Corporation, Town Hall, Jammu, and that of Srinagar at Srinagar Municipal Corporation, Karan Nagar, Srinagar and the Board of Directors of SPVs will consist of separate IGP, DC, Vice Chairman, Commissioner and the Government of India while the Independent Directors (to be appointed by the Minister for Housing and Urban Development) shall be from Legal, Finance, Technical and Environment fields.

According to an order issued by the General Administration Department, each Smart City Company will start with Authorized Share Capital of Rs 10 lakh divided into 1,00,000 (One Lakh) Equity Shares of Rs 10 each and Paid Up Capital of Rs 10 lakh each for both ‘Jammu Smart City Limited’ and ‘Srinagar Smart City Limited’ for implementation of Smart City Development Projects.

According to the order, the present arrangement shall subsist till the Companies are registered under the Companies Act, 2013 and, thereafter, the affairs of these Companies shall be governed by the Memorandum of Association and Articles of Association under the Companies Act 2013.