As insisted by our Minister of Housing and Urban Poverty Alleviation Mr. M.Venkaiah Naidu, 500 cities and towns that account for the 65% of India’s urban population are to be credit rated by Atal Mission for Rejuvenation and Urban Transformation (AMRUT). Out of these 500 cities, 94 cities got its rating from AMRUT.
- Based on the report released by the Minister, 55 out of 94 cities have got Investment grade ratings which account 59% of the rated cities spread across 14 states. These 500 cities are included in Smart city mission.
The ratings are provided on the basis of assets and liabilities of Urban Local Bodies and its revenue streams, resources available for capital investments, Double Entry Accounting practice and other governance practices.
- These credit ratings are made for obtaining the readiness of the urban bodies for issuing Municipal Bonds for mobilization of resources.
Total of 20 ratings starting from AAA to D, these cities are rated on the above listed criteria.
- The cities which got the rating above BBB is consider as a Investment grade rated cities and below BBB are considered as below par and these cities need to undertake necessary interventions to improve their ratings for obtaining positive response to the Municipal Bonds to be issued.
Top rated cities
The cities which got AA+ rating are NDMC, Navi Mumbai and Pune followed by Ahmadabad, Visakhapatnam and Hyderabad with AA rating.
- Hence these 500 cities should work hard on their own development in various sectors which in turn helps the countries development.
- Several other methods are also introduced like rating the cities based on cleanliness; central government is making the state government to develop its main cities.
About Atal Mission for Rejuvenation and Urban Transformation (AMRUT)
The scheme which is launched by Narendra Modi on 24 June 2015 works with an aim to improve the status of urban bodies by improving its infrastructure, adequate sewerage networks and water supply.
- The targets of this mission are to provide good infrastructure, tap water facilities and proper town planning.
- Rajasthan is the first state to submit State Annual Action Plan under AMRUT.
- State Annual Action Plan (SAAP) is provided by central government and based on that state government provides Service Level Improvement Plans (SLIP) to all its selected cities and ratings are provided based on their progress.