LUDHIANA: Civic officials are going to hunt a ensure from the state executive for floating bonds in the name of Ludhiana Municipal Corporation, as a result of most effective after that they may be able to move forward with their plan. If Ludhiana MC goees forward, it'll be the first MC in Punjab to float bonds, inviting funding from most people for spending on development works in the town. However, in the preliminary stage, the plan is to float bonds value Rs 100 crore, and this cash can be spent on development works of the town.
The officials, after taking a ensure from the federal government, will even deliver the matter to the data of the mayor and different councillors throughout the MC house. The department is working in this project for the previous more than a year, as they have got already checked their ranking through a non-public firm. MC Ludhiana has were given BBB+ ranking. However, officials are sceptical whether or not they may be able to float bonds in this ranking.
One of the officials said he used to be doubtful whether or not bonds would be issued with this ranking. Earlier, Ahmedabad and Pune had additionally issued bonds, however their ranking used to be a ways better than Ludhiana MC. He said though in the past one year, MC had turn into a hit in paying back a few of their liabilities, even then, they needed to pay Rs 220 crore in the form of bank and Hudco loans, as well as to contractors. He additionally shared that Pune MC — which had raised Rs 200 crore in June 2017 — may now not yield a good reaction later. Therefore, government will have to weigh all the professionals and cons sooner than floating bonds in the market.
Chief executive officer of Ludhiana Smart City Limited (LSCL)-cum-MC commissioner Jaskiran Singh said they would send an offer to the federal government looking for a ensure, and they have been hopeful of getting it. He said they would factor the bonds after completing all formalities, and to make their attempt a hit, they would contain giant company houses initially, after which the general public would be given a chance.
However, at this time, the dep. is not able to pay salaries to its staff, and now officials were informed to concentrate towards recovery of pending dues at first of the financial year. Last year, the dep. used to be prompt to wait until the top of the previous financial year sooner than launching the bonds, in an effort to strengthen their financial status, which had actually deteriorated.
The officials, after taking a ensure from the federal government, will even deliver the matter to the data of the mayor and different councillors throughout the MC house. The department is working in this project for the previous more than a year, as they have got already checked their ranking through a non-public firm. MC Ludhiana has were given BBB+ ranking. However, officials are sceptical whether or not they may be able to float bonds in this ranking.
One of the officials said he used to be doubtful whether or not bonds would be issued with this ranking. Earlier, Ahmedabad and Pune had additionally issued bonds, however their ranking used to be a ways better than Ludhiana MC. He said though in the past one year, MC had turn into a hit in paying back a few of their liabilities, even then, they needed to pay Rs 220 crore in the form of bank and Hudco loans, as well as to contractors. He additionally shared that Pune MC — which had raised Rs 200 crore in June 2017 — may now not yield a good reaction later. Therefore, government will have to weigh all the professionals and cons sooner than floating bonds in the market.
Chief executive officer of Ludhiana Smart City Limited (LSCL)-cum-MC commissioner Jaskiran Singh said they would send an offer to the federal government looking for a ensure, and they have been hopeful of getting it. He said they would factor the bonds after completing all formalities, and to make their attempt a hit, they would contain giant company houses initially, after which the general public would be given a chance.
However, at this time, the dep. is not able to pay salaries to its staff, and now officials were informed to concentrate towards recovery of pending dues at first of the financial year. Last year, the dep. used to be prompt to wait until the top of the previous financial year sooner than launching the bonds, in an effort to strengthen their financial status, which had actually deteriorated.
MC to seek guarantee from Punjab govt before floating bonds
![MC to seek guarantee from Punjab govt before floating bonds]()
Reviewed by Kailash
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May 08, 2018
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