CRISIL has assigned its corporate credit rating of ‘CCR B+’ to Haridwar Nagar Palika Parishad (HNPP). 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.

CRISIL’s rating on HNPP reflects the urban local body’s sound economic growth potential, supported by Haridwar’s status as a pilgrimage destination. The rating also factors in HNPP’s inadequate, volatile, and state government grant-dependent revenue receipts; adverse expenditure profile with high committed expenditure; weak financial risk profile, marked by low surpluses and debt-raising capacity; low reform orientation; inadequate service arrangements; and low project execution capability.

About HNPP
HNPP is governed by the Uttar Pradesh Municipality Act, 1916, and has an elected board of 25 members. HNPP covers an area 11.9 square kilometres and provides civic services to around 175,000 residents. Unlike other municipalities, HNPP is responsible for a few functions. Apart from solid waste management, its other services include provisioning and maintenance of street lighting. Other municipal functions, such as water supply, are in the hands of either para-statals or state agencies. In 2006-07 (refers to financial year, April 1 to March 31), HNPP generated revenue receipts of Rs.105 million and incurred a revenue deficit of Rs.25 million.