Pune: PCMC’s AA+ Finance Rating Fails To Break Its Debt Dependency Cycle

Varad Bhatkhande

Pimpri Chinchwad, 12th March 2024: Pimpri Chinchwad Municipal Corporation (PCMC) has once again earned a commendable financial credit rating of AA+, maintaining this status for the past three consecutive years. This recognition highlights PCMC’s consistent financial prudence and stability, reflecting a comprehensive evaluation of its strong fiscal performance during the financial year 2022-23 and the initial half of 2023-24.

PCMC Commissioner and Administrator, Shekhar Singh, expressed that the AA+ credit designation is a testament to the PCMC’s financial excellence and unwavering commitment to fiscal responsibility. The achievement underscores PCMC’s meticulous micro-financial management and solidifies its position as a responsible and transparent institution.

According to Chief Accounts and Finance Officer Praveen Jain, PCMC’s three-year streak with the AA+ credit rating is a rare feat among municipal corporations in the country. He emphasized that this recognition not only demonstrates financial strength but also signifies the trust bestowed upon PCMC by investors, shareholders, and citizens in terms of financial management.

Solid Finances, Yet Pursuing Loan?

Despite PCMC’s solid finance rating, which enhances investor confidence and establishes it as a reputable institution, Commissioner Singh has unveiled plans to secure a loan of INR 550 crores for the enhancement of Moshi Hospital and the beautification of the Old Pune-Mumbai highway. This announcement was made during the budget presentation for the fiscal year 2024-25 on February 20th. This announcement has raised concerns among residents about potential tax increases and financial strain.

Residents in the PCMC area are expressing scepticism and asking a pertinent question: If PCMC is indeed in a strong financial position, why opt for a loan instead of utilizing the current strong finances to address the much-needed developments? The decision to bypass elected representatives in favour of an administrative route has sparked worries about transparency and responsible financial management, despite PCMC’s efforts to minimize debt issuance.