MCH records revenue of Rs 399cr

The Municipal Corporation of Hyderabad (MCH) has recorded a revenue of Rs 399.11 crore for the financial year 2003-04, an increase of 5.38 per cent over Rs 378.72 crore in the previous fiscal.

Advertisement revenues nearly doubled to Rs 11 crore, while there is an increase of 6.05 per cent in property tax collections at Rs 160.91 crore.

Disclosing this here at a press conference today, MCH commissioner Chitra Ramachandran said, "Despite administrative responsibilities related to conduct of elections during the current financial year and issue of electoral photo identity cards, etc, the corporation has been able to sustain its financial buoyancy."

She said that that the corporation had made special efforts to raise the revenue during the financial year. Among them were issue of computer bills to all tax-payers, issue of demand notices to all defaulters, incentives to tax-payers who pay property tax with penal interest etc. The corporation is now taking action to curb indiscriminate use of hoardings for advertisements.

She said that Crisil had reaffirmed AA+ (so) with stable rating for the Rs 82.5 crore tax-free bonds issued by the corporation. The bonds were issued by the corporation in March 2002. They carry a coupon rate of 8.5 per cent and are to be repaid in six years. The corporation had been setting aside Rs 16.5 crore from its revenues as a sinking fund towards repayment, she said.

"The Crisil rating reflects the strength of the credit enhancement mechanism provided for the instrument, which is in the form of a liquid cash collateral to meet the rated bonds' debt-servicing requirements (both interest and principal) from the fourth year onwards," Ramachandran said.

In its observation, Crisil expects the MCH to maintain its sound fiscal performance in the medium term as its revenue income should grow at a healthy rate. Hence, its debt levels are not likely to increase in the medium term, the rating agency noted.