• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

New Delhi , Sept 29

The Cabinet Committee on Economic Affairs (CCEA) on Friday gave its nod for setting up a pooled finance development fund (PFDF), which would enable urban local bodies, including small and medium-sized municipalities, to raise funds from the market on a sustainable basis to meet their investment needs.

The PFDF would provide credit enhancement to these bodies to access market borrowings based on their credit-worthiness through State-level pooled finance mechanism viz. a State pooled finance entity (SPEF).

An allocation of Rs 400 crore under 10th Five-Year Plan has been made for this scheme.

Of the funds available with the Central Government for PFDF, only five per cent would be utilised for project development assistance. The rest would be utilised for contribution to the Credit Rating Enhancement Fund (CREF) to improve the credit rating of municipal bonds to investment grade.

The fund would be set up within a month.

More Stories on : Economy | Policy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rainfall figures back to normal

Copyright © 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line