<p>Bengaluru: The state government has cleared the formation of Bengaluru Smart Infrastructure Limited (B-SMILE), a special-purpose vehicle (SPV) aimed at executing major infrastructure projects in the state capital.</p>.<p>The new SPV will commence operations with an initial corpus of Rs 7,000 crore, which has been assured in the state budget.</p>.<p>According to the Memorandum of Association (MoA), the government will hold a 90% stake in the company, with the remaining 10% allocated to the <a href="https://www.deccanherald.com/tags/bbmphttps://www.deccanherald.com/tags/bbmp">Bruhat Bengaluru Mahanagara Palike (BBMP)</a>. The new entity is likely to be headquartered in Vasanthnagar, about 4 km away from the BBMP’s head office.</p>.Greater Bengaluru Act could imperil building safety .<p>In a notable move, the SPV has been authorised to take on not just government-funded projects but also development initiatives with private sector investments, either wholly or in part.</p>.<p>The company will oversee the construction of 40 km of tunnel roads crisscrossing the heart of Bengaluru, a citywide network of flyovers and underpasses, new roads along the buffer zones of stormwater drains (rajakaluves), and a proposed 250-metre sky deck — all considered pet projects of Deputy Chief Minister D K Shivakumar.</p>.<p>As a result, BBMP — soon to be restructured into smaller corporations — will relinquish control over several major infrastructure works.</p>.<p>Besides, the company’s jurisdiction will cover the entire Bengaluru Urban district.</p>.<p>The government has also given the SPV the powers to collaborate with or subsidise other entities, a clause that observers say may allow it to sidestep the provisions of the Karnataka Transparency in Public Procurements Act.</p>.<p>The company will be governed by an 11-member board, which includes a full-time CEO — an IAS officer. The mayor of Bengaluru, the commissioners of the Bangalore Development Authority and the Bengaluru Water Supply and Sewerage Board, BBMP engineer-in-chief, and three private sector experts will be part of the board.</p>.<p>A senior BBMP official said the move reflected the government’s push to ease traffic congestion and improve mobility in the city. “While the BBMP continues to manage day-to-day road maintenance including filling up of potholes, the new company is structured to implement long-term, high-impact infrastructure solutions,” the official said.</p>.<p>However, the MoA, cleared by the Urban Development Department on May 2, contains an inconsistency, referring to the SPV alternately as Bengaluru Smart Infrastructure Ltd & Bengaluru Road Infrastructure Ltd.</p>
<p>Bengaluru: The state government has cleared the formation of Bengaluru Smart Infrastructure Limited (B-SMILE), a special-purpose vehicle (SPV) aimed at executing major infrastructure projects in the state capital.</p>.<p>The new SPV will commence operations with an initial corpus of Rs 7,000 crore, which has been assured in the state budget.</p>.<p>According to the Memorandum of Association (MoA), the government will hold a 90% stake in the company, with the remaining 10% allocated to the <a href="https://www.deccanherald.com/tags/bbmphttps://www.deccanherald.com/tags/bbmp">Bruhat Bengaluru Mahanagara Palike (BBMP)</a>. The new entity is likely to be headquartered in Vasanthnagar, about 4 km away from the BBMP’s head office.</p>.Greater Bengaluru Act could imperil building safety .<p>In a notable move, the SPV has been authorised to take on not just government-funded projects but also development initiatives with private sector investments, either wholly or in part.</p>.<p>The company will oversee the construction of 40 km of tunnel roads crisscrossing the heart of Bengaluru, a citywide network of flyovers and underpasses, new roads along the buffer zones of stormwater drains (rajakaluves), and a proposed 250-metre sky deck — all considered pet projects of Deputy Chief Minister D K Shivakumar.</p>.<p>As a result, BBMP — soon to be restructured into smaller corporations — will relinquish control over several major infrastructure works.</p>.<p>Besides, the company’s jurisdiction will cover the entire Bengaluru Urban district.</p>.<p>The government has also given the SPV the powers to collaborate with or subsidise other entities, a clause that observers say may allow it to sidestep the provisions of the Karnataka Transparency in Public Procurements Act.</p>.<p>The company will be governed by an 11-member board, which includes a full-time CEO — an IAS officer. The mayor of Bengaluru, the commissioners of the Bangalore Development Authority and the Bengaluru Water Supply and Sewerage Board, BBMP engineer-in-chief, and three private sector experts will be part of the board.</p>.<p>A senior BBMP official said the move reflected the government’s push to ease traffic congestion and improve mobility in the city. “While the BBMP continues to manage day-to-day road maintenance including filling up of potholes, the new company is structured to implement long-term, high-impact infrastructure solutions,” the official said.</p>.<p>However, the MoA, cleared by the Urban Development Department on May 2, contains an inconsistency, referring to the SPV alternately as Bengaluru Smart Infrastructure Ltd & Bengaluru Road Infrastructure Ltd.</p>