Lucknow Municipal Corporation gets investment rating ‘A’

LUCKNOW: The Lucknow Municipal Corporation (LMC) has got the investment rating of A under the ‘capacity building for urban development (CBUD) programme’ of the Centre.

As the Amrut Mission is being implemented in 60 cities of UP, credit rating of all cities under this was executed under the CBUD programme to bring transparency in the financial system of urban local bodies (ULBs).

The investment grade of Lucknow and Ghaziabad municipal corporations was A. Now, after getting the investment grade, the UP government has decided to appoint transaction advisory for issuing municipal bonds to the tune of up to Rs 200 crore, said municipal commissioner Indramani Tripathi.

The scope of work of transaction advisor is to assess the present financial system, upgrade of investment grade and identification of projects in issuing municipal bond for raising funds. Based on the proposal received from various financial institutions, m/s AK Capital Services Ltd, New Delhi and m/s SPA Capital Advisor Ltd, New Delhi have been appointed as transaction advisors for Lucknow and Ghaziabad municipal corporations respectively. The cash-strapped municipal corporations would get a big boost if the bonds for the municipal corporation are approved by the centre. The LMC has planned a housing project with the help of these bonds.