Madhya Pradesh State Asset Management Company Formed

Why in News?

=> Madhya Pradesh State Asset Management Company (SPV) has been formed under Public Asset Management Department in pursuance of the decision taken by the State Government on January 27, 2022 in the meeting of the State Council of Ministers held under the chairmanship of Chief Minister Shivraj Singh Chouhan on January 18.

Key Points:

=> The authorized share capital of Madhya Pradesh State Asset Management Company and the proposed SPV is proposed to be kept at `1000 crore and paid-up capital `10 crore. After formation of SPV, 100% contribution of share capital will be borne by the Government of Madhya Pradesh.

=> The administrative department of the Madhya Pradesh State Asset Management Company will be the Madhya Pradesh Public Asset Management Department. The Board of Directors of the company has also been constituted, which will be headed by the Chief Minister and the Vice President will be the Chief Secretary.

=> The members of the Board will be Principal Secretaries of Finance, Public Asset Management, Public Works, Revenue, Commercial Taxes and Urban Administration and Development Departments. Managing Director Madhya Pradesh State Asset Management Company has been made Member Secretary.

=> The State Government has also fixed the responsibilities of the Board of Directors. Along with this, by constituting an executive committee for the company, its responsibilities have also been fixed. The state government has fixed the arrangement of financing, official structure as well as annual expenditure for the company.

=> Madhya Pradesh State Asset Management Company SPV has been assigned the following obligations-

• Formulation of policy and guidelines regarding proper management of public assets.
• To ensure proper utilization of the assets of the state and public sector undertakings through inter-departmental consultation and coordination.
• To evaluate various options for monetization and management of assets of government and public sector undertakings.
• To create necessary skills and qualified human resources for management and monetization of unutilized assets.
• To prepare the register of convertible assets of the state through information technology and geographic information systems.
• Necessary development work to enhance the value of assets, leading to better management of assets.
• To provide advisory services to government departments and undertakings for monetization and management of assets on service fee basis.
• To use it for various purposes of public interest by obtaining loans from various financial institutions as per the requirement.