The Patna Municipal Corporation (PMC) has swung into action after the city was selected for the Smart City Mission project on June 23.

PMC commissioner Abhishek Singh said: "We have prepared the draft proposal for the special purpose vehicle to be constituted for the execution of the project. The draft proposal is likely to be sent to the urban development department on Thursday. The proposal will be later put before the state cabinet for approval. Once approved by the cabinet, the special purpose vehicle will be registered under The Companies Act, 2013."

According to the central government guidelines on smart city projects, creating a special purpose vehicle is mandatory for release of funds.

After the special purpose vehicle is registered, the Centre will release the first instalment of Rs 100 crore, while the state government will also provide a matching contribution.

The total funds to be spent under the smart city project will be Rs 1,000 crore - to be shared equally between the state and the Centre in five years.

An official in the urban development department said on Wednesday: "Once the special purpose vehicle is formed, its hierarchy will be worked upon."

He added: "Patna's divisional commissioner will be made the special purpose vehicle's chairman, while the PMC commissioner will be its managing director. A chief executive officer will be appointed who will bear full responsibility of the smart city project as far as planning and execution of the project is concerned. The SPV will also have five directors nominated by central and state governments, while two other independent directors will also be there. Apart from the officials, chief financial officer and chief technical officer will also be appointed."

Dinesh Harode, who is providing technical assistance to the Union urban development ministry in terms of strategic inputs in formulation of smart city guidelines to selected smart cities/states in preparation of the proposals, said: "We will be taking utmost care of the Patna Master Plan (2015-2031) while working on the smart city project. The work to be carried out under area-based development under the Smart City Mission will be done keeping in mind the master plan approved by the state last year."

Patna was selected under the Smart City Mission in its fourth attempt by the Union urban development and housing ministry, a pet project of the Narendra Modi-led central government launched in June 2015.