The Andhra Pradesh government has set up a special purpose vehicle (SPV) — Amaravati Smart City Corporation Ltd — with the Union Ministry of Urban Development selecting Amaravati for the Smart City initiative.
Principal Secretary Ajay Jain, in an order, said the authorised share capital of the SPV woud be ₹20 crore and this will be increased later on as and when required. The paid-up capital will be ₹5 lakh divided into 50,000 equity shares of ₹10 each. This will also be increasedwhen required.
The AP Governor will hold 24,996 shares and Andhra Pradesh Capital Region Development Authority (APCRDA) 24,997 shares along with others.
The SPV will be promoted by the Andhra Pradesh Government and APCRDA (instead of urban local body), with a shareholding of 50:50 and will be governed by a board of directors. Its mandate is to take up the project and ensure timely completion.
The APCRDA at its 9th Authority meeting recommended building Amaravati on the banks of river Krishna and submitted proposal in accordance with the smart city guidelines.
The Ministry of Housing and Urban Affairs, after approving the move, nominated Ramesh Chand, Director (IFD), HUPA, as Director on the Board of the SPV for Amaravati smart city.
The SPV will be chaired by State Principal Secretary, Municipal Administration and Urban Development, with 10 other members, including Ramesh Chand.
The Commissioner of APCRDA shall submit a Memorandum of Association and the Articles of Association of the SPV prepared as per the guidelines of the Union Ministry for Urban development.
The designs for the development of the core capital region are at advanced stage of finalisation and work is expected to begin soon.