By Our Reporter
SHILLONG: With an aim to accelerate execution of various projects, the State Cabinet has approved setting up of a company with a minimum corpus fund of Rs 20 crore to build capacity for the contractors.
Briefing reporters after the Cabinet meeting, Chief Minister Dr Mukul Sangma said that the constitution of the Special Purpose Project Vehicle, a company to be floated by the Government, is a first of its kind in the country. According to the Chief Minister, the purpose of the setting up the company is to build the capacity of contractors, as there are delays in several works which resulted in financial overruns. He cited the example of delay in Khyndailad beautification project among others as an example of slow progress of work in Meghalaya. The Chief Minister hoped this innovative initiative of the Government would help build the capacity of the contractors of the State and raise the standard of works. Dr Sangma said after looking at the trend of contractors being dissuaded from investing in machinery which would otherwise result in speedier completion of work, the Government decided to contribute an amount of Rs 20 crore as corpus fund in the Government owned company to build the capacity of contractors in the State. He said the company, besides providing high- tech machinery for hire to the contractors of the state, will also provide soft loans to them. “Though the initial corpus fund is Rs 20 crore, the amount will later be raised to Rs. 50 crore which will become the equity of the State Government in the company,” the Chief Minister said. He added that private investors are also invited to invest in the company. “The Meghalaya Government will have no less than a stake of 51% at any given point of time in the company while no single private investor will be allowed to invest more than 26% in the company, he said.