Corpn to float SPV to function as private project consultant

According to a Corporation senior official, the SPV would function as a part of Chennai Smart City Limited — another SPV created to implement Smart City Mission projects. 

“The new SPV will be named Chennai HUBS Ltd. It will function as a project consultant and provide consultancy services to the government agencies, by helping them in preparing project reports,” the official said. 

He added that the new SPV would also operate government services on a payment basis. It would generate revenue that could be utilised by the civic body. 

However, the official clarified, the talks are in the initial stages and the new SPV will come into operation only after the State government approves. 

“We have experts in several fields in Chennai Smart City Limited. They can prepare project reports for others and implement projects,” he said. 

Presently, the Corporation has a practice of hiring private consultants to prepare detailed project reports and project management consultants to monitor the implementation of those projects. The costs of hiring the consultants add to the project costs. 

It may be noted that the Corporation is struggling to earn revenue as property tax collection has been affected due to the pandemic. During the financial year 2021-22, the civic body could only manage to collect less than Rs 100 crore as property tax till date.