Indore Municipal Corporation

Adequacy of Escrowed Revenue Stream

• Sufficient revenue generation/collection from own revenue streams, as mentioned in Financials, for timely servicing and redemption
• Total cash flows from own revenue streams in FY20 - Rs. 502.71 Crs, in FY21 - Rs. 447 Crs, in FY22 is Rs.648 Crs

Structured Debt Servicing Mechanism

• As per the structure, the Interest Payment A/c would be funded with an amount equal to two half-yearly interest payments  one day prior to the date of allotment and the this amount will be maintained at all the times
• Debenture trustee on behalf of bond holders shall have first pari passu charge (along with the existing bond holders) over the escrow account into which the tax and non-tax receivables shall be transferred for debt servicing

Lower own revenue source and moderate tax collection efficiency

• IMC’s own revenue comprise only 46% of the overall revenue receipts during the past three years
• A considerable share (30%) of Revenue comprises GST compensation receipts from the state government
• While the compensation is being received in a timely manner, the susceptibility of revenue to delays in receipt or regulatory changes exists