Karnataka Government to invest 7000 cr in B-SMILE for infrastructure development

Bengaluru Smart Infrastructure Limited (B-SMILE), a special-purpose vehicle (SPV) created to execute huge infrastructure projects in Bangalore, will start with a financial commitment of ₹7,000 crore from the Karnataka government. The initiative also provides room for private capital in the pursuit of its goals. 100% owned by the state or having a 90% government equity, B-SMILE will monitor several urban development projects that shall transform Bengaluru’s infrastructure. The nature of the governance structure combines public officials and experts from the private sector to guarantee the successful implementation and management of projects.

Key Points:

• Initial Investment: B-SMILE will receive 7,000 crores from the Karnataka government for infrastructure development.

• Ownership Structure: It has equity holdings by the Karnataka government (90%) and BBMP (10%).

• Governance: The organization will have an 11-member board, comprising public officials and private sector experts.

• Primary Focus: One of B-SMILE’s first jobs is to handle the 40 km tunnel road construction to decongest road traffic in Bengaluru.

• Future Reorganization: A restructuring of the board will be done after the Greater Bengaluru Governance Act, 2024, has come into effect.

What is B-Smile Initiative?

• B-SMILE Initiative means Bengaluru Smart Infrastructure Limited (B-SMILE), a special-purpose vehicle (SPV) under the Karnataka government to supervise and implement massive infrastructural developments in Bengaluru. 

• Objectives:

  • With initial financial pledge of crore rupees 7,000, B-SMILE seeks to resolve the urban concerns by introducing major infrastructure projects, for example, 40 km tunnel road to resolve the traffic impediment. 

  • The idea promotes public-private partnerships where both the government as well as the private sector contribute to the governance structure. 

  • B-SMILE aims at transforming Bengaluru’s infrastructure to introduce urban living and connectivity of the city.

Conclusion:

The creation of B-SMILE represents a major improvement of Bengaluru city’s urban infrastructure, with the beginning of the state government’s investments in B-SMILE of ₹7,000 crore. The innovative governance model that combines experience of the public and private sectors is hoped to solve major urban problems with the first one being a 40 km tunnel road project to alleviate the city’s traffic congestion.

UPSC Prelims Practice Question

Q. Referring to the Bengaluru Smart Infrastructure Limited (B-SMILE), note the following statements:

• It is a special-purpose vehicle (SPV) formed by the Government of Karnataka to implement large infrastructure projects in Bengaluru.
• It is fully financed and run by private investors on a public-private partnership basis.
• One of its first areas of focus is building a 40 km tunnel road to ease traffic congestion in the city.
• Its board has only elected representatives of the people from Karnataka. 

Which one of the following statements is/are correct? 

a) 1 and 3 only
b) 2 and 4 only
c) 1, 2 and 3 only
d) 1, 3 and 4 only