In a meeting chaired by Chief Minister Shri Shivraj Singh Chouhan, the Cabinet on Tuesday approved the creation of a Special Purpose Vehicle (SPV) for the proper management of government and public undertakings assets spread across the State. The orders for the first such SPV, named Madhya Pradesh State Asset Management Company (MPSAC) were passed by the Lok Parisampati Prabhandhan Vibhag here today.
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 monetised 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. 1000 crore. The initial paid-up capital would be Rs. 10 crores. The board of directors of the SPV includes Chief Minister 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, consultants and appoint transaction advisors with the expertise of asset management.