The territorial administration will set up Special Purpose Vehicles to oversee implementation of the Smart City project and Agence Francaise Development (AFD) assisted drinking water scheme in Puducherry, Chief Minister V. Narayanasamy said here on Tuesday.
The Chief Minister told reporters that the Special Purpose Vehicles would consist of government officials, representatives of AFD, and experts from various fields.
The Smart City project, involving an investment of ₹1,850 crore, would have the Centre’s share of ₹500 crore and an equal contribution by the territorial administration.
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The French Government would collaborate with the territorial administration in implementing the Smart City project.
It would provide technical assistance and provide a financial assistance of ₹500 crore. Around 15 companies based in France would partner in the Smart City project, the Chief Minister said.
The remaining amount of ₹350 crore would be sourced from external agencies, he said.
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The Union Finance Ministry had entered into an agreement with AFD for augmentation of drinking water and sewerage scheme in the Union Territory. As per the agreement, AFD would sanction ₹534 crore as first instalment for implementing the scheme.
FDA, a public development financial institution, had agreed to provide a soft loan of ₹1,400 crore to realise the drinking water and sewerage scheme. The agency would provide the amount at an interest rate of 1.25% repayable in 20 years, he said.
The Chief Minister said the two schemes would see a total investment of ₹3,650 crore in the town.
“It is unprecedented in the history of Union Territory and this would help transform the city landscape, besides proving jobs,” he added.