Mumbai, Mar 9 (PTI) Maharashtra Chief Minister Devendra Fadnavis on Monday suggested that municipal corporations should look at the possibility of raising Rs 1,000 crore through pooled bonds as it would help smaller corporations to raise funds for infrastructure projects.
Speaking at the Nashik Municipal Corporation’s bond issue listing at the National Stock Exchange, Fadnavis urged the municipal corporations to increasingly tap the bond market to fund the urban development projects.
Earlier in the day, Nashik Municipal Corporation (NMC) listed Rs 200 crore green municipal bonds on the NSE.
The funds raised by Nashik will be used for water infrastructure projects aimed at reducing water losses in the city from around 47 per cent to nearly 20 per cent, which will help improve operational efficiency and increase revenue through better billing and utilization, as per the NMC.
The reduction in water losses would generate additional revenue for the civic body, strengthening its ability to service the debt raised through bonds, Chief Minister said.
Fadnavis said the Nashik Municipal Corporation has emerged as a frontrunner by issuing both the first municipal green bond and leading in the earlier phase of bond issuances.
He said the incentive provided under the central government’s scheme effectively offsets the interest burden on such borrowings, enabling municipal corporations to access long-term funds at affordable rates.
The Chief Minister also urged officials to identify projects from smaller municipal councils and examine whether a pooled bond issue could be structured so that municipalities lacking financial capacity can also access the municipal bond market.
Separately, the chief minister said infrastructure projects worth around Rs 25,000 crore are being undertaken in Nashik and the surrounding metropolitan region ahead of the upcoming Kumbh Mela, which will significantly upgrade civic infrastructure in the city. PTI MSU DRR
This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.