Kolkata Municipal Corporation (KMC) will be raising around Rs 300 crore from banks and financial institutions (FIs) by pledging its fixed assets which was recently revalued at Rs 7,000 crore. This is probably the first time any municipal corporation has ever revalued its assets and has approached FIs and banks for raising funds without any sort of backing or guarantee from either the state government or the central government.
The amount will be raised primarily from banks by pledging lands and buildings belonging to KMC. Srei Capital Markets has been appointed the sole arranger of fund for the purpose. This is the third tranche of fund that the municipal corporation is raising post revaluation of assets. The first tranche of fund was raised through a Rs 50 crore municipal bond, followed by a Rs 100 crore against receivables. This time the fund is being raised to clean up KMC