With the Centre's directive, the PSCDCL has now urged the state to withdraw the order pertaining to powers to state high power committee to approve the public-private partnership (PPP) projects worth Rs 50 crore and above for the smart city.
THE POWERS of Special Purpose Vehicle will continue, said the Central government, in an official letter to the the Pune Smart City Development Corporation Limited (PSCDCL) on May 27, adding that they have learnt that the ‘state government’ was trying to exercise powers meant for the SPV for the smart city project.
With the Centre’s directive, the PSCDCL has now urged the state to withdraw the order pertaining to powers to state high power committee to approve the public-private partnership (PPP) projects worth Rs 50 crore and above for the smart city.
The state government had recently issued directives to the SPV for smart cities that it would have the authority to appoint Chief Executive Officer (CEO), Chief Financial Officer (CFO) as well as powers of high power committee to approve the PPP projects worth Rs 50 Crore and above.
This had created a stir as with this arrangement, the financial powers of the PSCDCL would be vested in the state government and the appointment of top positions too would also be done by the government, which was against the rules framed under the smart city mission.
In a resolution at the board meeting held today, the PSCDCL tabled the letter to communicate to the state government that the Centre has directed to bestow full autonomy to discharge functions of SPV.
The PSCDCL Board has already approved the decision to appoint a CEO and all other functionaries of the company following a competitive process and the Board wants to go ahead with it.
The Pune Municipal Corporation (PMC) already has powers to approve the PPP projects. Hence, the multiple levels of decision making will hurt the ease of doing business and lead to slower decision making, it said.
Besides, the PSCDCL feels the state government is a 50 per cent shareholder in the SPV and adequately represented in the board and hence, another level of approval is not required, it added.
“The decision of the Board of PSCDCL regarding appointment of CEO, CFO and other officers through a competitive process and to have full financial autonomy for ease of doing business may be approved at the earliest, keeping in mind the spirit of the letter sent by the Union government,” it said.
source:Indian Express
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