Indore Municipal Corporation to issue bonds worth Rs 170 crore
Indore. The Indore Municipal Corporation is going to issue bonds worth Rs 170 crores on June 28, 2018 aimed at ensuring economic participation of citizens in developmental activities of the city. The public issue of these bonds will be available on National Stock Exchange on June 28 from 11 am to 1 pm. Indore Municipal Corporation has been granted double “A” rating. Indore Municipal Corporation is the third in the country and first in the state to issue such bonds.
Commissioner Municipal Corporation told that there is possibility of huge investment in this taking into account the economic, social, academic, infrastructure development and professional scenario of Indore. He told that the amount obtained from this will be used for Atal Mission for Rejuvenation and Urban Transformation (AMRUT).
Information was given that goal has been set for water supply, sewerage, flood water drainage, urban transport and green space development in urban areas through the Government of India’s ambitious AMRUT Yojana. Indore Municipal Corporation has to spend an amount of Rs 972.26 crore under AMRUT Yojana which includes Centre’s share of Rs 324.05 crore, state’s share of Rs 486.13 crore and Rs 162.08 croer of the Municipal Corporation. The Corporation has issued public bonds to ensure public participation in this Rs 160 crores.
Rs 629.20 crore from the bond will be used on the drinking water system of Indore city, Rs 268.06 crore on sewerage system development, Rs 10 crore on flood water drainage, Rs 40 crore on urban transport and Rs 25 crore on developing the green belt area. It was informed that the bond period will be 10 years on which interest will be given every six months and after 7 years, the investor will be able to free 25 percent amount of the bond every year.
Earlier Pune and Hyderabad Municipal Corporation have also issued bond before Indore Municipal Corporation for AMRUT Yojana as per the Government of India. It is noteworthy that 34 cities of the state have been selected for this ambitious scheme of the Government of India. In this scheme, the Ministry of Urban Development of the Government of India has sanctioned Rs. 6200 crores in five years to the state.