MUMBAI: The Pune Municipal Corporation (PMC) has become the first local body in the country to issue municipal bonds. The corporation is going to raise Rs 2,264 crore for the development of the city through bonds.
The bond took off on Thursday in the Convention Hall of the Bombay Stock Exchange. Chief Minister Devendra Fadnavis, Union Minister Venkaiah Naidu, Pune Guardian Minister Girish Bapat, Pune Mayor Mukta Tilak, Union Minister Arjunram Meghwal, SEBI Chairman Ajay Tyagi, Pune civic chief Kunal Kumar, MLA Medha Kulkarni and others were present.
Fadnavis and Naidu marked the opening of the bond by ringing the traditional bell. The bond, which will be a benchmark for the next issue by any civic body, was oversubscribed six times, having received subscriptions worth Rs 1,200 crore.
The bonds, rated AA+, one of the top ratings, offer 7.59 per cent interest, about 30 to 40 basis points more than bonds sold by State governments. Domestic insurance, pension funds and large state-owned banks invested in the bonds.
Municipal bonds are a flagship programme of Prime Minister Narendra Modi. Fadnavis said it’s a transformation in civic administration. “While providing infrastructure to the city, the civic body needs funds. It was PM Modi’s vision to create a vibrant market of municipal bonds in India. The Pune civic body achieved the distinction of becoming the first urban local body in the country to issue municipal bonds,” he said.
“Pune will be a Smart City in the future after development through the fund. Puneites will get good civic services and amenities from the fund like 24x7 water supply, good roads and good solid waste management,” he added.
“The PMC is going to provide good connectivity and transportation and for that the civic body is planing a Metro project, which will be completed in next three years,” Fadnavis said.
Naidu said the cities are the engines for development of the country and the local government should take lessons from it. “The civic administration should initiate projects to upgrade the lifestyle of the citizens. The Central government provides Rs 4.13 lakh crore to the cities for various projects, but the local governments have to raise their own funds,” he said.
He appealed to citizens to participate in the developmental projects.
“Cities that develop on the model of Smart City will get 20 per cent more funds as incentive,” Naidu announced.