These days I am in search of information on working of Special Purpose Vehicle. In this pursuit I have come across many pieces of info available on Internet.
One such is the story of Konkan Railway from his own words of E. Sreedharan. Really eyeopening and excellent read to appreciate the end product called "Konkan Railway". A really a master piece executed and completed in recent times (post Independence).
This report/lecture has insights into many aspects of a large infrastructure projects:
- Conceiving a Project
- Political Support
- Project Management
- Engineering execution
The interesting point in this lecture is how Sreedharan with the help of bureaucrats got Chief Ministers and political class on board for the project. This testify to the fact that many of us believe that if bureaucrats has the will and vision, they can even get the political bosses agree to the ideas and projects.
Let us analyze this further and come up with ideas on how Namma Railu SPV should be modeled and conceived. Attached are some documents on Konkan Railway SPV.
Attachment | Size |
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The-Story-of-Toughest-Konkan-Railways-Project-India-by-Its-Project-Director-E-Shreedharan.pdf | 135.81 KB |
ಪ್ರತಿಕ್ರಿಯೆಗಳು
PWC's report on Konkan railway!
Another Report on KR from PWC.
http://www.atrilab.com/files/Finalreport10.06PWCgray.pdf
From wikipedia!
Cortsey - http://en.wikipedia.org/w...
Definition:
A special purpose entity (SPE) (sometimes, especially in Europe, "special purpose vehicle" or simply SPV) is a legal entity (usually a limited company of some type or, sometimes, a limited partnership) created to fulfill narrow, specific or temporary objectives. SPE's are typically used by companies to isolate the firm from financial risk. A company will transfer assets to the SPE for management or use the SPE to finance a large project thereby achieving a narrow set of goals without putting the entire firm at risk. SPEs are also commonly used in complex financings to separate different layers of equity infusion. In addition, they are commonly used to own a single asset and associated permits and contract rights (such as an apartment building or a power plant), to allow for easier transfer of that asset.
A special purpose entity may be owned by one or more other entities and certain jurisdictions may require ownership by certain parties in specific percentages. Often it is important that the SPE not be owned by the entity on whose behalf the SPE is being set up (the sponsor). For example, in the context of a loan securitization, if the SPE securitisation vehicle were owned or controlled by the bank whose loans were to be secured, the SPE would be consolidated with the rest of the bank's group for regulatory, accounting, and bankruptcy purposes, which would defeat the point of the securitisation. Therefore many SPEs are set up as 'orphan' companies with their shares settled on charitable trust and with professional directors provided by an administration company to ensure that there is no connection with the sponsor.
Uses
Some of the reasons for creating special purpose entities are:
SPV just got easier
Sub: Single Window for receipt of all Infrastructure Investment proposals.
Source
No excuses like... oh PPP is only on paper, RVNL guidelines are hogwash, SPV is not for real etc etc. If this single window, isnt clear enough, I dont know what is!
UMTA
The National Urban Transport Policy (NUTP), 2006 formulated by the central government envisages setting up of unified metropolitan transport agency (UMTA) in all million plus cities.
The minister said so far no city or sate has sought any funding from the centre.
Source
Shouldnt UMTA be the nodal agency to coordinate transportation projects? Why is there so much laxity on this? In case of Karnataka it should be the DULT
Further presentation on UMTA here