MOUD RELEASES MODEL AOA FOR CITY LEVEL SPV TO BE SETUP UNDER SMART CITIES MISSION
Implementation of the Smart City Mission at the City level will be done by a Special Purpose Vehicle (SPV) created for the purpose. The SPV will plan, appraise, approve, release funds, implement, manage, operate, monitor and evaluate the Smart City development projects. The SPV will be a limited company incorporated under the Companies Act, 2013 at the city-level, in which the State/UT and the ULB will be the promoters having 50:50 equity shareholding.
The affairs of the Company will be regulated by an Articles of Association (AoA) which shall include structure and functions of the SPV prescribed by Ministry of Urban Development as at Annexure 5 to the Smart Cities Mission Guidelines. In order to help the Cities in drafting their AoA, a model AoA has been prepared by the Ministry, in consultation with several stakeholders, and enclosed.
This is a model AoA to enable the State Governments/UTs/ULBs to prepare their own AoA based on local requirements, Smart City Proposal submitted, rules and procedures, etc. The AoA should also be vetted by the relevant State Govt. Departments, such as Law, etc.
All the States/UTs may immediately establish the SPVs in the Smart Cities selected as winners based on the results of Stage 2 (Round 1) of the competition. The State Mission Director should inform the Ministry of Urban Development once the SPV is established in order to claim the first instalment under the Smart Cities Mission.