‘Large cities must raise funds via municipal bonds for development works’

So far eight cities have raised funds through bonds and another six have submitted their proposals, he said.

Current Affairs:A senior Central government official on Thursday solicited the neighborhood bodies from huge urban areas to improve their exhibitions by embracing best rehearses and decrease their reliance on government gives by turning out to be confident by raising obligation.

Enormous urban communities must approach to raise assets through metropolitan securities to subsidize their formative ventures, Union lodging and urban issues secretary Durga Shanker Mishra said.

“Since over two decades, the reliance of urban communities on awards from states and Center has expanded, which isn’t the correct methodology. These urban communities need to decrease their reliance and become independent. They should make the most of the chance to sell civil bonds,” Mishra said.

So far eight urban areas have raised assets through bonds and another six have presented their recommendations, he said.

“The US treasury division has consented to help six urban communities, including Kakinada, Rajkot, Atalnagar, Faridabad, Ujjain and Gwalior to sell city securities,” he said.

A credit investigation of 469 urban communities indicated that 163 of them have speculation grade rating of BBB-while 36 have AA-rating of which eight have just sold securities. These numbers are an eye opener and shows the torpid frame of mind of our urban communities with regards to raising support, Mishra said.

He additionally noticed that separated from the 100 advised keen urban communities, there are a couple of urban communities which are taking activities to become shrewd urban communities.

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