Meghalaya to set up Special Purpose Vehicle (SPV) for Shillong Smart City Projects

Meghalaya to set up Special Purpose Vehicle (SPV) for Shillong Smart City Projects

The Meghalaya government is developing the groundwork for smart city projects as the state's Urban affairs minister Hamletson Dohling said on Tuesday that before pushing things further, the first step would be to constitute a Special Purpose Vehicle (SPV) to be headed by a chief executive officer. Its members will include officers and technical experts, associated with various departments of the state government.

Special purpose vehicle (SPV), also known as a special purpose entity (SPE), is a legal entity that is created to isolate a parent company from financial risk, comprising bankruptcy.

On June 20 this year the Ministry of Housing and Urban Affairs has selected Shillong, as the 100th Smart City. The Smart Cities Mission was first launched by Prime Minister Narendra Modi in 2015. In January 2016 the first list of 20 Smart Cities was published.

Dohling said, "We are already in the process of forming the SPV now," Dohling said that hence funding pattern is on a 50:50 basis between the Centre and a state, Meghalaya and other Northeastern states would push for a more reasonable funding pattern by the Centre predominantly when various centrally-sponsored schemes have been structured. Dohling added," We will keep discussing the issues with the Centre and we have good grounds to support our plea,"

Dohling moreover said the total cost of the Smart Cities Mission would be known after a detailed proposal was finalised.

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