Andhra Pradesh Government is considering floating ‘Build Andhra’ bonds to be issued by the Vijayawada Municipal Corporation with approval of Reserve Bank of India. Sources said it was one of the proposals under consideration as there is a need for huge capital for construction of the capital city. Funds would be mobilised from Centre, State, private participation from the commercial enterprises in the PPP mode and various other ways.
The bonds floated either by the Municipal Corporation or by the State government itself would be subscribed by public institutions and even individuals and the funds would be invested in infrastructure projects which in turn would give boost to overall economic activity and the resources so generated would be again invested in more infrastructure projects and debt servicing.
The proposal on ‘Build Andhra Pradesh Capital’ bonds also figured in the meeting with RBI Governor Raghuram Rajan here and he believed to have given some suggestions on how to go about it and wanted the officials to come with a detailed presentation. Having convinced the RBI Governor that the State was using technology effectively for streamlining its internal resources with its Comprehensive Financial Management System, government sources are optimistic that the banking sector would be confident to back the State for its reconstruction. Mr. Raghuram Rajan suggested to the State government to strengthen the legislation for protection of depositors in the Non-Banking Finance Institutions.
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