Credit rating of urban local bodies begins: 85 cities to be rated by March next year

Ahmedabad Municipal Corporation and New Delhi Municipal Council (NDMC) have got A minus rating, which is positive credit worthy.

All these 85 cities would be given credit rating by March next year. Pune and Ahmedabad are in advanced stages of going for municipal bonds.

The Minister has directed the officials to follow up with states and ULBs on a regular basis to ensure that all ULBs get credit rating at the earliest which is necessary to float municipal bonds for mobilizing resources.

Union Minister of Urban Development M. Venkaiah Naidu held a review process on Tuesday where it was revealed  that speedy implementation of new urban missions launched last year has resulted in the ministry spending 70 per cent of Plan Funds for 2016-17 during the last five months of the current financial year.

As a part of hand-holding, the states and ULBs for speedy execution of projects under new initiatives, the Ministry of Urban Development has identified substantial sources of resources from various domestic and multi-lateral lending agencies, which includes the Asian Infrastructure Investment Bank- US $ 5 billion, Asian Development Bank- US $ 1 billion, Japanese International Cooperation Agency- US $ 500 million, BRICS Bank- US $ 500 million per city, AFD-Euro 100-200 million.

HUDCO is likely to support Smart City Mission with Rs.10,000 cr.

The Minister was informed that in addition to 68 projects that were launched in 14 smart cities in June this year, another 134 projects have been identified of which 114 projects are under bidding.

While the first batch of all 20 smart cities have set up Special Purpose Vehicles, the 13 cities identified under Fast Track Competition would do so by the end of September.

M.Venkaiah Naidu expressed satisfaction over the Ministry approving an investment of Rs.1.24 lakh crore for improving basic urban infrastructure, which included Rs.78,000 cr investment under Smart City Plans of 33 cities and another Rs.45,935 cr under Atal Mission for Rejuvenation and Urban Transformation (AMRUT).

The  Minister directed the concerned officials to take necessary measures jointly with states and ULBs to promote conversion of municipal solid waste into compost.

As against Plan allocation of Rs.21,000 for 2016-17, the Ministry of Urban Development has incurred an expenditure of Rs.14,725 cr till August this year.