India Ratings Announces First Bond Rating on Metro Rail Project in India

By Accommodation Times News Service

India Ratings & Research (Ind-Ra) has rated the first bond transaction of metro rail project in India. Ind-Ra has rated Bangalore Metro Rail Corporation Limited’s (BMRCL) proposed bonds at ‘IND AA(exp)’.

Ind-Ra observes urban infrastructure improvement as one of the focus areas of the central government. The central government is providing support to the states and urban local bodies (ULBs) to improve urban infrastructure. Government of India’s (GoI) Jawaharlal Nehru National Urban Renewal Mission (JNNURM) aimed to improve urban infrastructure (water supply, sewerage, drainage, etc.).

The government intends to improve the quality of the country’s public transportation system by migrating people from using personal cars to public transportation. The government’s new transportation policy aims to tackle this through a multi-pronged strategy.

Over FY10-FY13, the central government released INR175.24bn to eight states for metro projects and INR29.7bn to 28 states and three union territories for urban transport projects. Simultaneously, GoI also availed overseas development assistance from the government of Japan (from Japan International Co-operation Agency; JICA) to implement metro rail projects. These funds were released as pass through assistance worth INR629.47 for metro rails in six states and 64.54bn Japanese yen for the Bangalore metro rail project.





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