Bar Metro, SPVs in Pune fail to deliver on proposed civic plans

Despite mounting criticism of the existing special purpose vehicles (SPVs) that they are not serving the purpose for which they were formed, except Metro, one more SPV – this time for riverfront development – has been added to the current list in Pune

PUNE: Despite mounting criticism of the existing special purpose vehicles (SPVs) that they are not serving the purpose for which they were formed, one more SPV – this time for riverfront development – has been added to the current list.

Despite mounting criticism of the existing special purpose vehicles (SPVs) that they are not serving the purpose for which they were formed, except Metro, one more SPV – this time for riverfront development – has been added to the current list in Pune. (HT)

The central and state governments decided to establish SPVs for special or dedicated projects mainly to avoid political interference and accelerate these projects. For instance, the Pune Municipal Corporation (PMC) has formed SPVs, including the Pune Smart City Development Corporation, PMPML, SRA, Maha Metro and now Riverfront Development. Except the Maha Metro however, none of the other SPVs are doing justice to the purpose for which they were formed. For instance, the PMPML is a loss-making enterprise and has been unable to provide satisfactory service to commuters apart from being dependent on both the PMC and Pimpri-Chinchwad Municipal Corporation (PCMC). Similarly, the SRA which is a separate authority for the redevelopment of slums has not delivered a single major project in the last five years. If anything, there is further proliferation of slums in the city.

Voicing his dissatisfaction, BJP leader and standing committee chairman Hemant Rasne said, “It was a good policy to start SPVs. The intention behind it was good but sadly, it is also true that the SPVs’ performance has not been satisfactory. It all depends on the administrative officer. Actually, there should be a performance audit of the officers. Though we establish SPVs, the rest of the staff is the same, working with the same mentality.”

Nationalist Congress Party (NCP) leader and former standing committee chairman Vishal Tambe said, “It is true that it is time to review the SPVs in the city. They are neither answerable to the citizens nor the elected members. Even corruption hasn’t been contained.”

Congress leader Arvind Shinde said, “The policy of forming SPVs was adopted to avoid political interference. We gave the SPVs enough time but there has been no decrease in corruption. Rather, I can confidently say that the SPVs are helping hide the corruption of administrative officials. The projects too are not being executed in the given time frame. It is my demand that all SPVs be dissolved and that the previous system be followed to bring all proposals under the umbrella of the general body.”

SPVs in PMC

Smart city - Pune City Smart Development Corporation Limited

PMPML - Pune Mahanagar Parivahan Mahamandal Limited

SRA - Slum Rehabilitation Authority

Metro - Maharashtra Metro Rail Corporation Limited

Education board

SPV for riverfront development