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.
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.
