NMMC is financially fit, can repay loans: Rating agency
CBD BELAPUR: The Navi Mumbai Municipal Corporation (NMMC) is financially healthy and capable of repaying loans, according to credit rating and research agency India Rating and Research (IRR).
The nationally renowned agency has given NMMC a high credit rating of AA+ stable, which is indicative of the financial strength and capability of the civic body. Such a rating will help the civic body to source funds for its mega projects and also issue bonds.
“Navi Mumbai has witnessed rapid growth in population owing to its positive image. It is being preferred by people because of its infrastructure and amenities,” said municipal commissioner Dinesh Waghmare.
He said, “The city also offers better environment and pollution-free options as compared to Mumbai. Lower prices of housing have made the city a favourite among people.”
According to Waghmare, “NMMC has played a significant part in this image and development through its projects of water supply, sanitation and hygiene, solid waste manage system and sewage treatment plants among others.”
“The credit rating agency has especially taken note of these aspects while rating NMMC,” said Waghmare.
“The 17.3% rate of annual increase in the revenue of the civic body has been termed ‘good’ by the agency, which has appreciated the 20.7% increase in revenue from cess/ local body tax (LBT). It has noted that the civic body will have to depend on government grant as the LBT has been abolished,” said Waghmare.
The municipal commissioner said the IRR took stock of NMMC’s work and then awarded it with the high financial standing of AA+ Stable rating.
“We are very pleased that we have received a certificate that NMMC is capable of providing quality civic services,” said Waghmare.
Dhanraj Garad, chief accounts and finance officer, NMMC, said, “This credit rating is a stamp of approval for the self-capability of the NMMC.”
Mayor Sudhakar Sonawane congratulated NMMc on the feat.
He said, “This is proof of the strong fundamentals of the city and it will help in further development of the city.”