Bhubaneswar Smart City SPV to Continue Guiding Urban Development Post-Mission
Bhubaneswar Smart City SPV to Continue Post-Mission

Bhubaneswar Smart City SPV to Continue Guiding Urban Development Post-Mission

Bhubaneswar: The Bhubaneswar Smart City Limited (BSCL), the special purpose vehicle (SPV) responsible for executing smart city projects in the capital, will persist in its role as a guiding body even after the conclusion of the Smart Cities Mission in March 2023. This confirmation came from Minister of State for Housing and Urban Affairs, Tokhan Sahu, during a recent session in the Rajya Sabha.

Government Clarifies SPV Status and Future Role

In response to inquiries regarding the status of SPVs established nationwide for smart city projects, Minister Sahu provided detailed insights. "The Smart Cities Mission, launched in 2015, was implemented through SPVs. The city-level implementation was handled by an SPV created for planning, appraising, approving projects, releasing funds, procuring, and managing projects," he explained.

Sahu emphasized that these SPVs are registered as private companies under the Companies Act, 2013, and were funded through grants from both state and central governments throughout the mission's implementation period. "Recognizing the strategic investments made in establishing and strengthening SPVs, and their growing relevance in supporting urban local bodies to address complex and evolving urban challenges, the government of India considered that these should continue," he stated.

Advisory Outlines Continued Mandate and Institutional Capacity

The Centre has issued an advisory outlining the future role of SPVs, mandating them to implement the Smart Cities Mission through focused planning, project development, and on-ground execution. "The SPVs cultivated a robust institutional capacity to manage high-volume urban projects within short timelines, while also contributing to the emergence of a skilled urban management workforce within the government system," Sahu added.

This move puts an end to speculation that BSCL would cease operations post-mission. Urban planner Dipu Nanda commented, "There was a discussion among urban experts that BSCL will stop functioning since the Smart Cities Mission ended in March last year. However, it needs to function to ensure the maintenance of the infrastructure it created."

Implications for Urban Infrastructure and Governance

The continuation of BSCL signifies a strategic shift towards sustaining urban development initiatives beyond the mission's timeline. Key points include:

  • Maintenance of Infrastructure: Ensuring ongoing upkeep of smart city projects implemented by BSCL.
  • Support for Urban Local Bodies: Assisting municipal authorities in tackling evolving urban challenges.
  • Institutional Legacy: Leveraging the skilled workforce and management expertise developed during the mission.
  • Future Planning: Guiding future urban development projects in Bhubaneswar based on lessons learned.

This decision underscores the government's commitment to long-term urban governance and infrastructure sustainability, setting a precedent for other smart cities across India.