The Union Government has released the most-awaited fund for the Pune Smart City project by transferring Rs 194 crore to the state government for starting the project. The Pune Municipal Corporation (PMC) informed about the transfer of fund.
The Union Government said that the funds have been sanctioned on the condition that the Pune Smart City Development Corporation Limited has to use the fund for the implementation of the project only and keep a separate grant funds account created exclusively for the mission.
According to the communication between the ministry and PMC, an equal amount has to be contributed by the state or the local civic body within seven days and the money has to be utilised strictly according to the guidelines of the mission.The fund should not be used for setting up the special purpose vehicle (SPV) or for internal use. The SPV has to furnish utilisation certificate in respect of the funds released at an earlier date, it said.
The funds should not be used for purchasing vehicles and equipment, construction and maintenance of buildings, creation of posts, payment of salary of SPV staff, the communication further clarified. However, the SPV is waiting for its first meeting of the board of directors as the state government has asked to wait for its nod.
Two independent directors on the board have to be appointed by the state government. “The SPV would begin its operation only after the state government allows to hold the meeting of the board of directors and appoint the two independent directors,” said a civic official.