Madhya Pradesh: Government forms SPV for management of assets

Bhopal (Madhya Pradesh): The Madhya Pradesh government has formed a Special Purpose Vehicle (SPV) to properly manage the assets of the state and PSUs, an official said on Monday.

The MP State Asset Management Company (MPSAC) will provide efficient management systems to the government for good management of unutilised assets and to enhance their structure and efficiency, the official said.

The SPV would coordinate with the state government to hold these assets which would be monetised to fetch value to the exchequer.

The MPSAC will be focusing on the existing participative model for good management of unutilised assets, the official said.

The decision to create the SPV was taken by the Madhya Pradesh cabinet in a meeting chaired by Chief Minister Shivraj Singh Chouhan recently, he said.

The SPV would be registered as a company under the Companies Act with an initial authorized capital of Rs 1,000 crore. The initial paid-up capital would be Rs 10 crore.

The board of directors of the SPV includes the chief minister, state chief secretary, secretaries of government departments and managing director of Madhya Pradesh Rajya Praisampati Prabandh Company, who will be the member secretary.

For proper management of government and public undertakings' assets, the SPV would be able to take the services of subject experts, consultants and appoint transaction advisors having expertise in asset management, the official added.

Published on: Monday, January 24, 2022, 04:42 PM IST