+
Real Estate

"We are working with around 277 urban local bodies," says Nalini Atul, JMD, Karnataka Urban Infrastructure Development & Finance Corporation

In an interaction with <span style="font-weight: bold;">SHRIYAL SETHUMADHAVAN and RAHUL KAMAT, Nalini Atul, Joint Managing Director, Karnataka Urban Infrastructure Development &amp; Finance Corporation (KUIDFC),</span> appraises <span style="font-weight: bold;">CW</span> on the corporation's whopping Rs 140 billion PPP plan. <br /> <br /> <span style="font-weight: bold;">Introduce us to KUIDFC's role in smart cities.</span><br /> Seven smart cities have been selected in Karnataka. <br /> Belgavi was selected in the first round, with four more cities - Shimoga, Davangere, Tumkur and Mangaluru - in the third round and Bengaluru in the fifth. KUIDFC plays the role of a nodal agency through which the fund is routed and then it goes to the special purpose vehicle (SPV). The role of the nodal agency is to also oversee the overall implementation of the project in all smart cities. <br /> We help cities, project management consultants (PMCs) and SPVs in planning, execution and monitoring. <br /> <br /> <span style="font-weight: bold;">Apart from the inflow from the government, what are the other sources of funds?</span><br /> In the initial plan itself, cities were asked to identify ways to increase the outlay of the project. In general, over a period of five years, the Central and state governments will give around Rs 5 billion each. <br /> <br /> In the initial stage, it was clear that we could do PPP and the project would pay back, based on its life-cycle - its design, its capacity to get funds from the market, and its revenue generating capacity. To that extent, in Karnataka, we have an outlay of Rs 140 billion, of which Rs 70 billion is for the Government of Karnataka and Government of India, on a share of 50:50, and Rs 30 billion will be for public-private partnership (PPP) projects that are already planned. Another Rs 40 billion approximately is in terms of convergence. <br /> <br /> There was a discussion of municipal bonds. But if the SPV is getting funds at a cheaper rate in the market, it should not go in for an SPV bond.<br /> <br /> <span style="font-weight: bold;">Apart from property tax and water tax, urban local bodies do not have other sources of revenue generation...</span><br /> We are doing projects worth Rs 50 billion. For these projects, we have taken loans from the international market, or they are funded by the Government of Karnataka. At present, not all urban local bodies (ULBs) are ready to pay water charges. One of the two areas where KUIDFC is working is project financing. We take projects, which are then financed through loan or through the state. The state government has given us around Rs 10 billion of funds and we are working with Rs 50 billion worth of funds. <br /> <br /> <span style="font-weight: bold;">Projects need to be backed by solid design...</span><br /> As I said earlier, the project capability, design and implementation are crucial. <br /> The monitoring and implementation of the project has to be perfect. <br /> As far as Bengaluru is concerned, the city is capable. But speaking of the smaller ULBs, we have around 277 ULBs and are working with all of these. <br /> While Bengaluru has a PMC as its head to give some guidelines, other ULBs do not have this advantage. So, we do handhold them for projects such as water supply, sewage treatment plant (STP), etc. We also work towards reforms and are working on ratings if we need to go for municipal bonds in future.<br /> <br /> To share your views, write in at feedback@ConstructionWorld.in<br />

In an interaction with <span style="font-weight: bold;">SHRIYAL SETHUMADHAVAN and RAHUL KAMAT, Nalini Atul, Joint Managing Director, Karnataka Urban Infrastructure Development &amp; Finance Corporation (KUIDFC),</span> appraises <span style="font-weight: bold;">CW</span> on the corporation's whopping Rs 140 billion PPP plan. <br /> <br /> <span style="font-weight: bold;">Introduce us to KUIDFC's role in smart cities.</span><br /> Seven smart cities have been selected in Karnataka. <br /> Belgavi was selected in the first round, with four more cities - Shimoga, Davangere, Tumkur and Mangaluru - in the third round and Bengaluru in the fifth. KUIDFC plays the role of a nodal agency through which the fund is routed and then it goes to the special purpose vehicle (SPV). The role of the nodal agency is to also oversee the overall implementation of the project in all smart cities. <br /> We help cities, project management consultants (PMCs) and SPVs in planning, execution and monitoring. <br /> <br /> <span style="font-weight: bold;">Apart from the inflow from the government, what are the other sources of funds?</span><br /> In the initial plan itself, cities were asked to identify ways to increase the outlay of the project. In general, over a period of five years, the Central and state governments will give around Rs 5 billion each. <br /> <br /> In the initial stage, it was clear that we could do PPP and the project would pay back, based on its life-cycle - its design, its capacity to get funds from the market, and its revenue generating capacity. To that extent, in Karnataka, we have an outlay of Rs 140 billion, of which Rs 70 billion is for the Government of Karnataka and Government of India, on a share of 50:50, and Rs 30 billion will be for public-private partnership (PPP) projects that are already planned. Another Rs 40 billion approximately is in terms of convergence. <br /> <br /> There was a discussion of municipal bonds. But if the SPV is getting funds at a cheaper rate in the market, it should not go in for an SPV bond.<br /> <br /> <span style="font-weight: bold;">Apart from property tax and water tax, urban local bodies do not have other sources of revenue generation...</span><br /> We are doing projects worth Rs 50 billion. For these projects, we have taken loans from the international market, or they are funded by the Government of Karnataka. At present, not all urban local bodies (ULBs) are ready to pay water charges. One of the two areas where KUIDFC is working is project financing. We take projects, which are then financed through loan or through the state. The state government has given us around Rs 10 billion of funds and we are working with Rs 50 billion worth of funds. <br /> <br /> <span style="font-weight: bold;">Projects need to be backed by solid design...</span><br /> As I said earlier, the project capability, design and implementation are crucial. <br /> The monitoring and implementation of the project has to be perfect. <br /> As far as Bengaluru is concerned, the city is capable. But speaking of the smaller ULBs, we have around 277 ULBs and are working with all of these. <br /> While Bengaluru has a PMC as its head to give some guidelines, other ULBs do not have this advantage. So, we do handhold them for projects such as water supply, sewage treatment plant (STP), etc. We also work towards reforms and are working on ratings if we need to go for municipal bonds in future.<br /> <br /> To share your views, write in at feedback@ConstructionWorld.in<br />

Next Story
Infrastructure Urban

India to Invest Rs 600 Billion to Upgrade 1,000 ITIs

As part of its drive to modernise vocational training, the Ministry of Skill Development and Entrepreneurship (MSDE), in collaboration with Gujarat’s Labour and Employment Department, held a State-Level Workshop at the NAMTECH Campus within IIT-Gandhinagar to discuss the National Scheme for ITI Upgradation.The consultation brought together key stakeholders from industry and the training ecosystem to align expectations and support implementation of the scheme, which aims to transform 1,000 Industrial Training Institutes (ITIs) across India using a hub-and-spoke model. The total outlay stands ..

Next Story
Infrastructure Urban

India Unveils Rs 600 Billion Maritime Finance Push

The Ministry of Ports, Shipping & Waterways (MoPSW) hosted the Maritime Financing Summit 2025 in New Delhi, bringing together over 250 stakeholders including policymakers, industry leaders, global investors, and financial institutions. The summit, held under the ambit of Maritime Amrit Kaal Vision (MAKV) 2047, focused on transforming India into a leading maritime power with strengthened financial, infrastructural, and technological capabilities.Union Minister Sarbananda Sonowal emphasised India's strategic progress, noting that average port turnaround times have dropped from four days to u..

Next Story
Infrastructure Urban

Govt Allocates Rs 500 Million To Boost Community Radio

The Central Government, through its ‘Supporting Community Radio Movement in India’ scheme, has allocated Rs 500 million to strengthen the community radio ecosystem across the country. The initiative aims to assist both newly established and long-operational Community Radio Stations (CRSs), ensuring their relevance to local educational, social, cultural, and developmental needs.According to the policy published by the Ministry of Information and Broadcasting, CRSs may be set up by not-for-profit organisations with at least three years of demonstrated community service. These stations are ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?