IDEAS home Printed from
   My bibliography  Save this paper

Towards Bank Financing of Urban Infrastructure


  • Abhay Pethe


  • Manju Ghodke


Provision of quality urban infrastructure is an area of major concern for the Indian Economy. The financing of this component of infrastructure may turn out to be a somewhat tractable problem, even in the short to medium term. The present paper focuses precisely on this issue. In more recent times, however, several initiatives have been taken to ensure that greater devolution of political and economic power actually happens. Amongst them the 73rd and 74th Constitutional Amendment Bills have sought to give local government – municipalities and panchayats true measure of financial autonomy. Given the need for commercial funding or attracting funds from the capital market for urban infrastructure a large number of initiatives have been made in India, some in participation with the World bank and USAID. Attempts are being made to make the ULBs develop the required commercial outlook for private funding. The volume of debt and equity financing has grown significantly for concessions and some financing mechanisms have evolved, mostly syndicated bank loans arranged by foreign banks and, to a much smaller degree, bond financing. However in adapting these institutional practices to the Indian conditions will require several crucial modifications. In the context of ‘universal banking’ the existing financial institutions and commercial banks may be mandated to do the job, thereby saving the cost of setting up new institutions.

Suggested Citation

  • Abhay Pethe & Manju Ghodke, 2005. "Towards Bank Financing of Urban Infrastructure," Working Papers id:36, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:36
    Note: Institutional Papers

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Ladd, Helen F. & Bradbury, Katharine L., 1988. "City Taxes and Property Tax Bases," National Tax Journal, National Tax Association, vol. 41(4), pages 503-523, December.
    2. Abhay Pethe & Manju Ghodke, 2005. "Towards Bank Financing of Urban Infrastructure," Working Papers id:36, eSocialSciences.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Abhay Pethe, 2005. "On Urban Infrastructure Development," Working Papers id:42, eSocialSciences.
    2. Abhay Pethe & Ajit Karnik, 2004. "Infrastructure Finance In The Time Of Revenue Crunch: Exploring New Avenues For Urban Local Bodies," Department of Economics, University of Mumbai, Mumbai Working Papers 10, Department of Economics, University of Mumbai, Mumbai.
    3. Ajit Karnik & Abhay Pethe & Dilip Karmarkar, 2003. "Assessment Of Revenue And Expenditure Patterns In Urban Local Bodies Of Maharashtra," Department of Economics, University of Mumbai, Mumbai Working Papers 5, Department of Economics, University of Mumbai, Mumbai.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ess:wpaper:id:36. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Padma Prakash). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.