Madhya Pradesh approves formation of Special Purpose Vehicle to provide efficient management
Madhya Pradesh approves formation of Special Purpose Vehicle to provide efficient management systems to State Government for improved asset utilization
Bhopal, January 24: In a meeting chaired by Chief Minister Shri Shivraj Singh Chouhan, the Cabinet has appro ved the creation of a Special Purpose Vehicle (SPV) for the proper management of assets owned by the state government and by public undertakings. The orders for the first such SPV, named Madhya Pradesh State Asset Management Company (MPSAC) have been passed by the Lok Parisampati Prabhandhan Vibhag.
The Madhya Pradesh State Asset Management Company (MPSAC) will provide efficient management systems to the government for good management of unutilized assets and to enhance their structure and efficiency.
The SPV would work in close coordination with the government to hold these assets which would be monetized to fetch value to the exchequer. The SPV focusing on the existing participative model for good management of unutilized assets is one of the visionary steps of Chouhan.
The SPV would be registered as a Company under the Companies Act with an initial authorized capital of Rs. 10 00 crore. The initial paid-up capital would be Rs. 10 crores. The board of directors of the SPV includes Chief Min ister Shri Shivraj Singh Chouhan, chief secretary, secretaries of government departments and managing director of Madhya Pradesh Rajya Praisampati Prabandh Company as its member secretary. For proper management of government and public undertakings assets, SPV would be able to take the services of subject experts, consult ants and appoint transaction advisors with the expertise of asset management.
