Hyderabad: In a bid to secure financial backing for the development of the Musi River and to enhance the city’s infrastructure, Greater Hyderabad Municipal Corporation (GHMC) commissioner Amrapali Kata, along with senior officials, met with members of the Union Ministry of Housing and Urban Affairs (MoHUA) on Monday. This meeting marks a significant step towards obtaining necessary funds and advancing urban development projects in Hyderabad.
The GHMC delegation, which included Kata, GHMC additional commissioner for revenue Sneha Shabarish, and joint managing director of Musi River Front Development Corporation (MRDCL) Gouthami Poojari, participated in a meeting focused on the assessment parameters for urban local bodies (ULBs). The MoHUA organised this meeting to discuss various financing instruments that could be accessed by ULBs to support their development projects. The GHMC and MRDCL are currently exploring the possibility of raising funds through municipal bonds to finance the city’s infrastructure initiatives. This approach is part of a broader strategy to leverage financial markets for urban development. MoHUA is in the process of developing a framework to enable ULBs to secure financing through different instruments, with 53 parameters identified to assess the creditworthiness of these bodies.
Historically, GHMC has successfully raised municipal bonds worth Rs 495 crore in three tranches and mobilised Rs 5,895 crore through rupee term loans (RTLs) to fund major infrastructure projects. These funds were raised independently, without state or central government support. To ensure transparency and maintain investor confidence, GHMC undergoes annual credit assessments by two external rating agencies as required by SEBI. Both India Ratings and Care Ratings have consistently awarded GHMC an ‘AA’ rating, reflecting the corporation’s strong financial standing. The meeting also saw participation from officials representing ULBs of Visakhapatnam, Pune, Chennai, Surat, and Indore, indicating a collective effort to enhance urban infrastructure across various Indian cities. The deliberations aim to create a robust financial framework that allows ULBs to tap into diverse funding sources, thereby accelerating urban development initiatives.
The GHMC’s proactive approach in seeking central support underscores its commitment to sustainable urban development. By securing funds for the Musi River development, the corporation aims to transform the riverfront into a vibrant urban space, contributing to the overall growth and beautification of Hyderabad.
