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Another key highlight of 2017 was the announcement of the 5 major transformational reforms proposed by the MoHUA, urging Municipalities to go beyond an incremental approach. The reforms included: 1.) Trust and Verify approach 2.) Formulating Land Titling laws, 3.) Credit Rating of ULBs 4.) Value Capture Finance (VCF) 5.) Improving professionalism in ULBs.

Trust and Verify approach is expected to curtail corruption and improve citizen’s life by easing the procedures to avail building permissions, change of title in municipal records, and birth & death registrations etc. Rajasthan is the only state that has passed a Land Titling law. The state assembly approved the passage of the Rajasthan Urban Land (Certification of Titles) in April 2016.

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Pune Municipal Corporation raised 200 crore in the first bond issue by a civic body in India in 14 years. The proceeds from the issue will be used to provide 24 x 7 water for all citizens of Maharashtra’s second biggest city. The bond issue is seen by many as a test case for the revival of municipal bond market in India.

View the CARE credit ratings letter for PMC
View the Fitch Credit ratings letter for PMC
View the Audit Report 2015-16 for PMC

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MoHUA revised the criteria for disbursal of performance grants to ULBs for the period of 2017-2020. The 14th Finance Commission had recommended 20% of the Basic Grants for the ULBs to be linked with performance conditions. As per this mandate, MoHUA has formulated a new scheme for disbursal of performance grants to ULBs for the period of 2017-2020. The scheme provides details of scoring criteria and essential conditions to be fulfilled by ULBs to avail these performance grants. To be eligible, ULBs will have to score 60 or above as per the specified criteria.

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