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CRISIL Ratings - Rating Action :Nagpur Municipal Corporation

August 27, 2008
Mumbai

CRISIL ‘CCR A’ for NAGPUR MUNICIPAL CORPORATION under JNNURM

Corporate Credit Rating*	CCR A[Assigned]
Rs.1500 Million Bonds	A/Stable [Reaffirmed]

* As part of JNNURM

CRISIL has assigned its corporate credit rating of ’CCR A’ to Nagpur Municipal Corporation (NgMC). 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.

The rating reflects NgMC’s diversified revenue profile, and its favourable legal and administrative framework. For 2006-07 (refers to financial year, April 1 to March 31), octroi collections accounted for 51 per cent of NgMC’s total revenue, property tax 19 per cent, non-tax charges 22 per cent, and grants 7 per cent. The rating also factors in NgMC’s weak financial profile, inadequate service arrangements, and poor pace of reforms implementation.

About NgMC
NgMC was formed in 1951. The corporation is governed by an elected body with the municipal commissioner as the administrative head. It covers an area of 217 square kilometres, divided into 136 wards, and services a total population of 2.4 million. It provides key civic services such as construction and maintenance of roads and bridges, water supply and sanitation, drainage and sewerage, solid waste management, and primary education. For 2006-07, the corporation had revenue receipts of Rs.3.95 billion and revenue surplus of Rs.1.05 billion.

Media Contact	Analytical Contacts	CRISIL Rating Desk
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August 27, 2008	http://www.crisil.com