"A common refrain among foreign investors is that there is complete lack of information on cities beyond the biggest eight, hence this ranking which is based on a comprehensive set of criteria," said Ganesh Raj of Ernst & Young.
The rating will be done on the basis of 56 parameters, which have in turn been collated into five critical indices. These indices include city pros perity, urban governance, business environment, infrastructure, and quality of life.
The city prosperity index will evaluate a city's spending power - a crite rion very important for retailers trying to decide whether to open an outlet in a city. (Incidentally, E&Y's research showed that Shimla has the highest per capita income in this country.) The second index, urban governance, evaluates cities on parameters such as urban reforms, computerisation of land records, and discipline in public finance. The index on business environment takes cognisance of factors such as investment climate, labour availability (number of graduates that join the workforce annually), workforce composition, and the number of approved SEZs.
By parul118, Section Finance & Investing
Posted on Tue Sep 18, 2007 at 03:43:02 AM EST
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In the first round, Ernst & Young has rated all the 63 cities included in the Jawaharlal Nehru National Urban Renewal Mission. Next year more cities will be rated. In this year's ratings, eight cities have been assigned the EY-ICR-A rating, 15 have been assigned the EY-ICR-B rating, and the remaining have been assigned the EY-ICR-C rating. Within each grade, cities have been assigned sub-grades, such as A++, A+, and A.
"The parameters for assessing a city's growth potential will keep evolving, since the importance of each parameter will not remain constant. For instance, water and power supply might be important criteria today for rating cities, but they may not remain so in future. We will keep adding new and more relevant criteria in future," added Raj of Ernst & Young.
Source:Indian Express,18 Sep,2007
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