Mumbai: The Pune Municipal Corporation (PMC) has become the first local government body in the country to seek investment through a public bond offering, Chief Minister Devendra Fadnavis said on Thursday. The PMC, he said, has launched a ₹2,264-crore bond issue for public and institutional investors to finance an ambitious urban development policy that includes plans for a high-pressure drinking water network, clean roads and efficient garbage disposal system.
Mr. Fadnavis was speaking at the launch of the open market borrowing (OMB) through the bond issue by the PMC at the International Convention Centre (ICC) of the Bombay Stock Exchange (BSE)
Mr. Fadnavis said that Pune had become the first municipal corporation in the country to seek investments through a bond issue and the funds generated by the venture would be used to develop Pune into a smart city. “Puneites will be able to boast of a 24-hour supply of pure drinking water, good roads, excellent and efficient garbage disposal facilities with high capacity through the effective utilisation of the finance raised through the bond issue," he said.
Union minister for urban development Venkaiah Naidu, who rang the stock market bell to launch the bond issue, said that PMC had set an example for other local government bodies to follow.
The Union government disburses ₹4.13 lakh crore annually for urban development in India, but he pointed out that the process can be accelerated by initiatives to raise additional funds. “Those cities that undertake urban development commendably and through the involved participation of local inhabitants would be incentivised through 20% of their spends being given to them in additional allocations by the Union government,” Mr. Naidu said.
Earlier the Chief Minister said that the PMC was the first in the country to take advantage of the call given by Prime Minister Narendra Modi asking local government bodies to raise financing for integrated development works through open market borrowings placed through the bond markets.
