Pune Civic Body Plans Munis

It has requested ILFS, the leading urban infrastructure finance company, to aid the entire process of raising finance abroad for various urban development projects, including sewerage and roads.

It has already approached Danida, the Danish funding agency, for a 30-year loan which would part-finance the projects at hand. It is believed that a British funding agency is also involved in negotiations currently on.

ILFS has not yet taken on the assignment, and has advised extreme caution to the Pune municipality in proceeding with the proposed fund raising exercise, since urban development financing has turned out to be an extremely perilous area of growth, given the countrys fragile legal framework.