CRISIL has assigned its corporate credit rating of ‘CCR BB’ to Asansol Municipal Corporation (AsMC). The rating exercise has been carried out under a mandate from the Ministry of Urban Development, Government of India, as part of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

The rating reflects AsMC’s favourable legal framework and buoyant non-tax revenues. Growth in non-tax revenues is attributed to AsMC’s identification of new revenue sources from municipal properties, its concerted effort to regularise buildings, and the growing real estate activity within Asansol city. The rating also factors in AsMC’s sub-optimal economic base, reflected in low per capita income, low credit risk profile leading to low debt-raising capacity, inadequate service arrangements, inadequate project management capacity, and high dependence on grants from the state government.

About AsMC
AsMC, formed in 1994, is governed by the Asansol Municipal Corporation Act, 1990. AsMC covers an area of 127 square kilometres and provides a range of civic services to around 0.48 million residents. The major services provided by AsMC are water supply and drainage, public roads and bridges, solid waste management, public health, and street lighting. For the purpose of administration, the service area is divided into five boroughs; each borough is subdivided into 10 wards. In 2006-07 (refers to financial year, April 1 to March 31), AsMC generated revenue receipts of Rs.219.5 million and a revenue surplus of Rs.82.6 million.