BACKGROUND AND DETAILS
India’s creaking urban infrastructure requires large infusion of capital to upgrade and modernize to world class levels. While capital investment requirements in cities is estimated at over 0.6 trillion USD during 2011-2031, municipalities in India have a total annual revenue base of only 17.5 billion USD.
Municipalities in India do not have the resources to partake this need for capital investments and Governments are unlikely to have the fiscal bandwidth to fund this large requirement entirely. Cities will therefore need to raise significantly higher revenues through tapping into private capital.
The poor credit rating of municipalities, the tepid municipal bond market and the inability of municipalities to raise revenues on the strength of their own balance sheets allude to poor financial governance and transparency. In additional to other financial reforms, availability of timely and credible financial statements in a standardized format can instil confidence in the local bodies to raise capital and elevate their credibility to attract investors.
- Omidyar Network: Funder
- Ministry of Housing and Urban Affairs, Government of India (to be formalised): Partner
- National Institute for Urban Affairs (to be formalised): Implementation partner