85 cities begin process for credit rating for urban local bodies

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New Delhi | September 06, 2016 8:04 PM

The process of credit rating of urban local bodies (ULBs) has begun in 85 cities and 12 have completed the process which will help them float municipal bonds for mobilising resources, the government said today.

Urban Development Minister M Venkaiah Naidu, during a review meeting of various schemes, also directed the officials to follow up with states and ULBs to ensure all ULBs get credit rating at the earliest, a release by the Urban Development ministry said. (Source: PTI)Urban Development Minister M Venkaiah Naidu, during a review meeting of various schemes, also directed the officials to follow up with states and ULBs to ensure all ULBs get credit rating at the earliest, a release by the Urban Development ministry said. (Source: PTI)

The process of credit rating of urban local bodies (ULBs) has begun in 85 cities and 12 have completed the process which will help them float municipal bonds for mobilising resources, the government said today.

Urban Development Minister M Venkaiah Naidu, during a review meeting of various schemes, also directed the officials to follow up with states and ULBs to ensure all ULBs get credit rating at the earliest, a release by the Urban Development ministry said.

“Under the initiative of credit rating of ULBs, 85 cities have launched the process and the same has been completed in respect of 12. Ahmedabad Municipal Corporation and New Delhi Municipal Council (NDMC) have got A- – rating (positive credit worthy). All these 85 cities would be given credit rating by March next year,” the statement said.

It also said the Urban Development Ministry has spent 70 per cent of plan funds for 2016-17, indicating a speedy implementation of new urban missions launched last year.

As against plan allocation of Rs 21,000 crore for 2016-17, the ministry has incurred an expenditure of Rs 14,725 crore till August.

As part of handholding the states and the ULBs for speedy execution of projects, the ministry has identified sources of resources from various domestic and multi-lateral lending agencies, including Asian Infrastructure Investment Bank (USD 5 billion), ADB (USD 1 billion), JICA (USD 500 million), BRICS Bank (USD 500 million per city), and AFD (Euro 100-200 million), it said.

HUDCO is also likely to support Smart City Mission with Rs 10,000 crore, it added.

Naidu has expressed satisfaction over the ministry approving an investment of Rs 1.24 lakh crore for improving basic urban infrastructure, including Rs 78,000 crore under Smart City plans of 33 cities and another Rs 45,935 crore under Atal Mission for Rejuvenation and Urban Transformation (AMRUT).

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