State Govt. Directed PCMC to Form a SPV for Implementing Smart Cities Mission

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The Pimpri Chinchwad Municipal Corporation has been directed by the state government to immediately form a Special Purpose Vehicle for implementing the Smart Cities Mission Projects.

In this regard, a government has also been issued on Monday. The special purpose vehicle (SPV) to be formed under the Companies Act, 2013 would be a government company. A 15-member board of directors of the company comprising six directors of the Pimpri-Chinchwad Municipal Corporation (PCMC), four directors of the state government and two independent directors has been approved by it.
The other directors will be the PCMC commissioner, the chief executive officer (CEO) of SPV and Nitin Kareer, principal secretary, urban development department. Kareer would also be the president of SPV.
The directors of the SPV will be mayor, chairman of the standing committee, the ruling party leader and the Opposition leader of PCMC. Two directors will be nominated by the general body of PCMC –  one each of two political parties as per the descending order of their strength in the civic body.
At present, the minimum age of joining the scheme is 18 years and the maximum is 40 years. An official said that this is also being looked at. He added that higher contributions would be mandated for such subscribers that join the scheme at high ages.
As the initial share capital of SPV, the state government has approved an amount of Rs 5 lakhs. Out of this, 50% government share (Rs2.5 lakh) has been given approval. The SPV has the freedom to increase the share capital according to its requirement.
“The municipal commissioner has the power to finalize the name of SPV” states the GR ( Government Resolution). The registered office of the SPV will be in the PCMC main office building.
The power of signing on the application for company registration and all other legal documents on behalf of PCMC and the state government has been given to the PCMC municipal commissioner. The chief auditor of the Union government has to conduct the audit of SPV.
PCMC commissioner Dinesh Wahgmare said that they shall complete the work of forming the SPV in a week. The election code of conduct for municipal elections will not be a hindrance in its formation.
News Source: http://timesofindia.indiatimes.com/city/pune/state-govt-directs-pcmc-to-form-spv-for-smart-city-projects/articleshow/56429287.cms
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