PMC bonds get good response, Rs 200 cr raised at 7.5 pc interest

ST Correspondent
Tuesday, 20 June 2017

Urban Development Department Minister Venkaiah Naidu expressed satisfaction over the municipal corporation’s decision to float bonds and the response it got immediately.

Pune: The municipal bonds launched by the Pune Municipal Corporation (PMC) received a good response in the market. The PMC raised Rs 200 crore through the bonds at an interest rate of 7.59 per cent per annum.

The civic body came up with the bonds to fund its 24x7 water scheme. It preferred the bonds instead of taking a loan from financial institutions.
Prime Minister Narendra Modi had suggested that municipal corporations in the country float bonds for funding infrastructural projects. The PMC became the first civic body to implement his idea.

Urban Development Department Minister Venkaiah Naidu expressed satisfaction over the municipal corporation’s decision to float bonds and the response it got immediately.

Naidu expressed his happiness over the PMC’s success with the bonds by tweeting. The listing ceremony of the bond programme is on June 22 at the Bombay Stock Exchange in the presence of Naidu.

Accounts Department Head Ulka Kalaskar confirmed that Rs 200 crore were deposited in the civic body’s account on Tuesday.

Mayor Mukta Tilak said it indicates that it is the right step taken by the municipal corporation, following a positive response to its bonds. 

The mayor said the PMC is discussing with the Central government the issue of exemption from various taxes for the company formed under the Smart City project. As the shareholding of the PMC and the State government is 50 per cent each, it is not getting the nod as a government scheme. The State and Central governments would come up with a suggestion for the same, said Tilak.

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