Financial Daily from THE HINDU group of publications
Friday, Aug 30, 2002
Financial Daily from THE HINDU group of publications Friday, Aug 30, 2002 |
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Industry & Economy
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Events Norms soon to ensure funds flow to civic bodies Our Bureau
MUMBAI, Aug. 29 THE Centre will shortly formulate guidelines for State Governments to take advantage of the `City Challenge Fund' and the `Pool Finance Development Scheme' to ensure better fund flow to municipal bodies. "The guidelines for both these funds which were announced in the Union Budget will be given to the State Governments shortly," said Mr M. Shankar, Secretary, Ministry of Urban Development and Poverty Alleviation (MOUDPA), at the `Urban reforms and new funding options' seminar, organised by CRISIL Infrastructure Advisory here on Thursday. The two funds will provide partial guarantees for bonds raised by urban local bodies in the corporate bond market. This will serve as a `credit enhancement' tool for these local bodies which otherwise are known to suffer from lack of subscriptions to their bonds in the market. The pool finance fund has a corpus of Rs 400 crore and the city challenge fund Rs 750 crore, which are provided by the Union Government. Similar guarantees are being issued in the oil sector, said Mr Shankar.
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