The Gujarat state government announced that a special purpose vehicle will be formed to develop the Tapi riverfront in Surat city. The Surat municipal commissioner will be the chairman of the SPV, the government said.
A government statement said the SPV — Tapi Riverfront Development Corporation — will take up the Tapi riverfront and rejuvenation project, which has already been sanctioned.
The statement quoted chief minister Bhupendra Patel as saying that the state government has granted in-principle approval for setting up of the SPV with authorized paid-up capital of Rs 10 crore.
The Surat municipal commissioner will be the chairman and a state government nominee will be on the board of directors of TRDCL. In addition, three officers of the state government will be among the nine shareholders of TRDCL. The CEO of Surat Urban Development Authority will be a director of the SPV, the government release said.
The Rs 10 crore paid up capital of TRDCL will be split equally by the Surat Municipal Corporation and the state government.
The central government has already sanctioned a proposal to seek a World Bank loan for the first phase of the Tapi riverfront development project, which is pegged to cost Rs 1,991 crore.