The Hindu : Kerala / Kochi News : Civic body told to go in for credit rating

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Tuesday, Jun 10, 2008
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Kerala - Kochi

Civic body told to go in for credit rating

Staff Reporter

In a bid to raise funds by tapping markets

Kochi Corporation has a triple B Minus rating
‘Rating can be improved with reforms’

KOCHI: The Corporation of Cochin which is facing a severe fund crunch in implementing its infrastructure projects could soon take the credit rating route to raise funds from the public.

Union Urban Development Secretary M. Ramachandran said here on Monday that Kochi, which is now ranked somewhere in the middle category in credit rating with a triple B Minus rating, could improve its standing with performance on the reforms front. This can lead to a stage at which the Corporation would be able to go to the market to raise funds for its projects. The Kozhikode Corporation had raised money by issuing bonds way back in 1969, pointed out Mr. Ramachandran.

If Kozhikode could do it in 1969, Kochi can do it now, he said as he pointed to more recent examples of urban bodies in several parts of the country tapping the market to raise funds for their projects using their rating. The official said that the Union Urban Development Ministry had started preparations for a meeting of the Prime Minister with Chief Ministers later this year on issues related urbanisation.

The meeting would address concerns of various States and review of Jawaharlal Nehru National Urban Renewal Mission (JNNURM), said the official.

He said that issues such as cost escalation, a major problem facing projects that have reached the implementation stage, would be addressed. The JNNURM programme had been envisaged to ensure participation from the local bodies and the State governments, said Mr. Ramachandran. He pointed out that had it not been for the JNNURM, several new projects would not have taken shape.

Mr. Ramachandran was speaking to reporters after he addressed a special meeting of the Kochi Corporation Council on the role of local bodies in implementing JNNURM. During the interaction, councillors raised the issue of escalating costs, problems related to land acquisition, etc. which were hurdles to implementing some of the JNNURM projects.

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