PCMC fasttracks it's SPV

Amid protests by some opposition corporators, the proposal for formation of a special purpose vehicle (SPV) company in Pimpri-Chinchwad was approved at the general body meeting of the municipal corporation .The SPV, proposed to be named the ‘PCMC Infrastructure Company Limited, will implement infrastructure and transportation projects in the township.Opposition corporators belonging to the BJP and the Shiv Sena as well as a few independents protested against the approval, after their demand to include party leaders on the board of directors of the company was turned down. Municipal commissioner Ashish Sharma placed the SPV proposal under the urgency clause before the start of the general body meeting. Speaking to reporters later, Sharma said the SPV would have the mayor, municipal commissioner, standing committee chairman, ruling party leader, city engineer, Jawaharlal Nehru National Urban Renewal Mission (JNNURM) coordinator and an executive engineer on the board of directors of the company. Sharma said that the Asian Development Bank had agreed in principle to provide long-term loans. Also, one of the main options for raising funds would be granting additional FSI (floor space index) for development of commercial properties along the eight BRTS corridors, by charging a premium. “It will be like a real estate toll, instead of charging the user of the BRTS. The permissible FSI will be 1.8 instead of 1, and this will allow construction of more commercial space along the route,” he said. The PCMC will also have an advertisement policy by which revenue will be generated for the SPV company, he added.Compared to the Pune Municipal Corporation (PMC), Pimpri-Chinchwad required less funds for infrastructure projects, Sharma said. In the comprehensive mobility plan, the PCMC has proposed the implementation of BRTS on eight main roads, besides feeder routes on four roads. It would require Rs 2,000 crore to implement these projects.Sharma said the powers of the general body would not be diluted by the formation of the SPV company.t has been formed because the corporation cannot provide the required funds for infrastructure projects merely from the annual budget. Unlike the Pune Municipal Corporation, which took nearly six months to approve the SPV proposal, and that too at the standing committee meeting, in Pimpri-Chinchwad the proposal was approved at the general body meeting in just a day. This was possible because district guardian minister Ajit Pawar had instructed corporators in the PCMC to immediately approve the proposal. The SPV proposal was not even listed on the agenda of the general body meeting, and it was tabled under the urgency clause by the civic administration.