Special Purpose Companies for Project Implementation

To implement the individual projects, specific Special Purpose Vehicles (SPV) could be formed, which could be entirely private sector entities, be PPP entities, or even purely public sector (central/ state government) entities depending upon the type of projects being implemented. These SPVs could be promoted either by DMICDC or by respective central/ state government agencies. However, there will be considerable savings in time in case SPVs are created through DMICDC as a number of approvals that are required for setting up of SPVs or during disinvestments in later stages can be avoided. Roles and Responsibilities of the Project Specific Special Purpose Vehicles will include design, finance, construct, operate, maintain and collect user charges/ toll, sharing revenue with the respective government agencies and transferring the project assets to the concerned agency at the end of concession period.
Functions:
. Implementation of specific components of the projects - easier to implement if each component is confined within a state boundary,
. Projects to be awarded to operators, preferably with all relevant clearances and awarded through a bidding process,
. Project operators to raise finances, implement and operate the project.
Composition:
. Own Board of Directors of each SPV
Financial Structure of SPVs :
. Own equity specific to each project,
. Initial small equities could be of DMICDC, which would then be sold to operators selected for implementation.
. Debts raised domestically and externally. Debts could also be raised by DMICDC and passed on to SPVs.