Municipal financing way to progress for Indian cities: Banga
He also stressed on building resilient cities that are “inclusive, safe for women and girls, where young people have jobs and resilient to climate change.”
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World Bank President Ajay Banga (Express File Photo) Municipal financing is the way for India to progress in the cities, said World Bank Group President Ajay Banga at a G20 event held at GIFT City Sunday.
“I have been six weeks in this job and what I am concerned about is that the definition of trying to eradicate poverty is inadequate without including challenges of climate change, pandemics, fragility, food and security. These things are intertwined,” said Banga who began his five-year term on June 2.
“If you look at India, with the kind of cities we have here, municipal financing is the future. Lots of Indian cities are very credit-worthy. They may not have the data presented in a form that enables private investors to comprehend the creditworthiness of that city. They may not have the ability to produce bankable project….Municipal financing is the answer for the way for India to progress in the cities,” he said at the event where Union Finance Minister Nirmala Sitharaman and her Indonesian counterpart Mulyani Indrawati were also present.
Pointing out that unfavourable policy environments, regulatory constraints and absence of project de-risking as reasons for the lack of private funds flowing to the cities, Banga said, “It is essential to find sources for large capital outlays that are needed to provide new infrastructure and services to these cities and upgrade ageing infrastructure in the number of cities. This calls for concerted efforts by the governments and international financial institutions.”
He also stressed on building resilient cities that are “inclusive, safe for women and girls, where young people have jobs and resilient to climate change.”
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