The Hindu Business Line : Nedfi-Srei Capital to take up financial recast of Guwahati civic body

The projects are said to be an outcome of the MoU signed between Srei Capital Markets Ltd, a member of the Srei Infrastructure Finance and Nedfi in Guwahati last month.

Kolkata , May 12

SREI Capital Markets Ltd and the North Eastern Development Finance Corporation (Nedfi) have received the mandate for restructuring the financial management works of Guwahati Municipal Corporation (GMC).

According to informed GMC sources, the combine is also set to receive the mandate for financial advisory services from the Assam Urban Water Supply and Sewerage Board (AUWSSB).

The projects are said to be an outcome of the MoU signed between Srei Capital Markets Ltd, a member of the Srei Infrastructure Finance and Nedfi in Guwahati last month.

The Srei-Nedfi tie-up is mainly for taking up financial consultancy work on urban infrastructure development projects in the north-eastern region.

Srei Capital has already completed three such financial restructuring works for the Kolkata Municpal Corporation, Pune Municipal Corporation and Ahmedabad Municipal Corporation.

Sources said the company has been asked to submit detailed proposals to both GMC and AUWSSB for getting the work started sometime in June 2004.

Sources said the financial restructuring work for GMC would also involve exploring new avenues such as raising of funds for some viable urban development projects.

GMC would chalk out the final programme after receiving the terms and conditions from Srei Capital.

On the AUWSSB programme, sources said the activities may include possible restructuring of the Board, valuation of fixed assets of AUWSSB, support in raising of resources, affixation of priorities with respect to project formulation and completion, study of tariff structure of board, advice on developing an integrated financial accounting system including MIS and costing, project evaluation and cost estimation to prepare a bankable venture of the board.

Srei Capital, it is learnt, has been asked to submit a detailed proposal for consideration and approval of AUWSSB.

GMC sources said urban services improvement programmes typically in Class II and Class III towns entail improving urban governance, improvement of urban environment, capacity building, institutional strengthening and resource mobilisation.

Resources raising is said to be important as revenue incomes of urban local bodies (ULBs) is said to be insufficient for meeting expenditure needs as well as for creating new infrastructure.

The 74th Amendment to the Constitution now requires that ULBs become self-sustainable.

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