CRISIL has assigned its corporate credit rating of ‘CCR A-’ to Vadodara Municipal Corporation (VMC). 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 VMC’s comfortable financial risk profile, strong socio-economic base, and its favourable legal and administrative framework. VMC’s financial risk profile is marked by low indebtedness and strong debt protection measures. The economic base is backed by Vadodara’s high per capital income, its well-developed industrial base, and its potential to emerge as the hub for knowledge-based industries. The rating also factors in VMC’s weak project implementation capabilities, inadequate service arrangements, and adverse expenditure profile.

About VMC
VMC is governed by the Bombay Provincial Municipal Corporation Act, 1949. The corporation has an elected body with the municipal commissioner as the administrative head. VMC covers an area of 149 square kilometres and services a total population of about 1.6 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, health services, and primary education. For 2006-07 (refers to financial year, April 1 to March 31), VMC had revenue receipts of Rs.3.4 billion and revenue surplus of Rs.990 million.