CRISIL has assigned its corporate credit rating of ‘CCR B’ to Bodhgaya Nagar Panchayat (BGNP). 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 BGNP’s high social and economic importance, driven by its status as a pilgrimage centre and World Heritage City, which is expected to provide continued access to government grants. . The rating also factors in BGNP’s adverse expenditure profile, marked by high establishment costs, leading to low revenue surpluses and weakening the panchayat’s financial risk profile. Also, BGNP’s inadequate technical capacity has led to poor service delivery and arrangements. Further, it has a poor socio-economic base, marked by low income levels, poor managerial capacity, leading to lack of reforms and high project risk.

About AsMC
BGNP, formed in 1982, is governed by the Bihar Municipal Act of 2007. BGNP covers an area of 17 square kilometres and provides a range of civic services to around 38,000 residents. The major civic services provided by BGNP are water supply, storm water drains, solid waste management, sewerage, sanitation, road maintenance, street lighting, and public transport. In 2006-07 (refers to financial year, April 1 to March 31), BGNP generated revenue receipts of Rs.4.42 million and a revenue deficit of Rs.4000.