B-SMILE Launches with ₹7,000 Crore Commitment

B-SMILE Launches with ₹7,000 Crore Commitment

Why in the News ?

The Karnataka government has launched B-SMILE, a special-purpose vehicle with an initial ₹7,000 crore funding to execute large urban infrastructure projects in Bengaluru. The initiative aims to combine public funding and private investment for urban transformation.

Understanding Formation and Ownership Structure:

• B-SMILE stands for Bengaluru Smart Infrastructure Limited.
• It is a special-purpose vehicle (SPV) dedicated to executing large-scale infrastructure projects in Bengaluru.
• It will begin operations with an initial financial commitment of ₹7,000 crore from the Karnataka government.
• The government will hold a 90% stake, and the Bruhat Bengaluru Mahanagara Palike (BBMP) will hold 10%.
• The company is fully state-owned but permitted to attract private investment to boost flexibility and resources.

Governance and Administrative Setup

• B-SMILE will be governed by an 11-member board.
• Headed by a full-time CEO (IAS officer).
• Members include:
  • Mayor of Bengaluru

  • Commissioners of Bangalore Development Authority and BWSSB

  • BBMP’s Engineer-in-Chief

  • Three private sector experts

• This mix aims to provide administrative efficiency and technical expertise.
• The board structure may change after implementation of the Greater Bengaluru Governance Act, 2024 and BBMP’s division.

Initial Projects and Development Goals

• First major project: construction of 40 km of tunnel roads to reduce surface traffic congestion.
• Tunnel roads are part of a larger decongestion blueprint for the city.

B-SMILE will play a pivotal role in transforming urban mobility and infrastructure planning in Bengaluru