Kochi : The cash-strapped Kochi Corporation plans to raise funds for the Rs 1,500-crore urban challenge fund (UCF) project to be implemented with the support of Union govt, through a public-private partnership (PPP) model. Of the Rs 1,500 crore, Union govt will give 25%.
“Union govt’s earlier schemes like Jawaharlal Nehru National Urban Renewal Mission (JNNURM), Smart City and Amrut had a Central allocation of 50%. In the case of UCF, Central allocation is just 25%. The corporation council held last week approved a concept note on 30 projects identified by the civic body for potential funding under UCF. As per UCF norms, at least 50% of the funds should be mobilised through bonds, bank loans and PPP.
We will also float a municipal bond,” said deputy mayor V R Sudheer. Our view is that the corporation should adopt a judicious mix of development as well as welfare projects,” said Kochi Corporation opposition leader K A Sreejith. The corporation plans to implement projects which can yield returns. Given the financial status of the corporation, we will have to tap the potential of the PPP. “In the initial phase, we will implement projects to develop corporation’s land parcels into commercial space. The land at Vyttila will be developed as a local area plan while the land parcels at Kaloor, Mattancherry, Kacherippady and Edappally will be developed into commercial complexes on PPP model. We will hold discussions with major private investors to fund the projects,” Sudheer added. Detailed project reports will be prepared only for govt approved projects. UCF’s vision is to encourage urban local bodies to adopt market-based financing mechanisms for development. At the same time, there are apprehensions that the corporation’s welfare projects will take a backseat. “While shifting to the revenue-generating projects alone, projects to support the livelihood and welfare of society will be ignored. You Can Also Check: Gold Rate in Kochi | Silver Rate in Kochi | Bank Holidays in Kochi | Public Holidays in Kochi