The Hindu Business Line : ‘Vibrant fixed income market needed’

Chennai, Sept. 18 The current turmoil in financial markets, commodity price fluctuations and high inflation will make it difficult for municipalities and urban local bodies to raise finance for their infrastructure projects, said Mr William Streeter, Managing Director & Head of Global Infrastructure & Project Finance, Asia Pacific, Fitch Ratings.

He said this made it all the more important that a vibrant fixed income market is developed in the country in order to help channelise long term funds for such needs. Investors would then be able to act on information rather than gut feel, he said. He said that the Indian Government had laid a handsome foundation and provided incentives for institution building at the municipal level. Fitch Ratings has completed 14 rating assignments of urban local bodies. This is part of the 21 ratings commissioned by the Jawaharlal Nehru National Urban Renewal Mission, Ministry of Urban Development. Mr Streeter said that the ratings exercise would eventually bestow significant gains for these municipalities in helping them access higher amounts of funding. He pointed out that infrastructure expansion plans of many of the municipal corporations were no longer in small increments but larger and more transformational.

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