September 1st 2023.
India Rating and Research has awarded the Navi Mumbai Municipal Corporation (NMMC) an ‘AA+/Stable’ rating for its financial performance during 2022-23. This is a huge achievement, as NMMC is the only civic body in the country to have achieved this rating for eight consecutive years.
India Rating and Research is a well-known financial institution that evaluates credit ratings for various institutions every year. The municipal commissioner Rajesh Narvekar said that “this is proof that the financial condition of NMMC is strong”.
The NMMC has managed to maintain its financial condition in spite of a rise in expenses. These expenses include emergency measures taken to fight the Covid epidemic, increased administrative expenses due to the implementation of the Seventh Pay Commission, allowances and differential amounts, and expenditure incurred to pay the difference of the last three years due to increase in minimum wages of over 6000 contract workers.
These expenses have been mandatory, yet the fixed deposits of NMMC have still increased from ₹1300 crores on March 31, 2023 to ₹1750 crores in August 2023. This shows that the financial position of the Municipal Corporation is still strong.
The NMMC has also paid off its entire debt to the MMRDA. This has allowed them to be completely debt-free.
In addition, NMMC is making use of LiDAR technology to increase its property tax collection, which is one of the main sources of income. This technology is expected to increase the property tax collection by ₹300 crores. This extra income will ensure that there are enough funds available for development works and government grants.
These efforts by NMMC to increase its financial performance have made it an attractive option for investors. Its ‘AA+/Stable’ rating will ensure that the investments are secure and the civic body will be able to use them to further enhance its performance.
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