Telengana Sets up Special Purpose Vehicle for Kaleshwaram Project.

The state government set up a special purpose vehicle (SPV), Kaleshwaram Irrigation Project Corporation, recently to seek financial support for the project’s implementation.

The SPV will be established as a limited company under the Companies Act, 2013 and promoted by the state government and financial institutions jointly. With its registered office in Hyderabad, the SPV will be headed by a full-time chief executive officer and have nominees of the state government and financial institutions on its board. The CEO will be appointed for a fixed term of two years. Its chairperson will be the principal secretary (I&CAD) or as decided by the government.

The main aim of the SPV is to plan, appraise and approve release of funds; and implement, manage, operate, monitor and evaluate the project. It aims to ensure operational independence and autonomy in decision-making and mission implementation.

There will be a state-level high-powered steering committee (HPSC) and the SPV will refer to it matters that require approval.The SPV will also access funds from other sources such as debt, loans, user charges, taxes and surcharges.

It is proposed to give complete flexibility to the SPV to implement the project and the state will take measures accordingly. The SPV may appoint project management consultants (PMC) for designing, developing, managing and implementing projects.


THE HINDU