Pune, June 22: After 1998, today the largest Municipal Bonds Program worth value of Rs. 2264 Crore marked the listing of Pune Corporation bonds where Union Minister for Urban Development M Venkaiah Naidu struck the ‘Gong’ at Bombay Stock Exchange.
While addressing the occasion, Minister Venkaiah Naidu said that this is India’s largest Municipal Bonds program with bonds worth value of Rs. 2264 Crore and any profits made in this will directly go to Pune Municipal Corporation. After striking ‘Gong’, further capturing the importance of the event he said that the sound of Gong is an echo of urban revival happening in our country now.
This is India’s largest Municipal Bond Programme for Pune 24x7 Water Supply Project. This will also be the first issuance since the publication of ‘Issue and Listing of Debt Securities by Municipalities Regulations, 2015’ by Securities and Exchange Board of India (SEBI). With this bond programme, Pune is poised to add a new chapter in the country’s urban transformation saga based on Prime Minister’s vision of financially empowering urban local bodies.
As cities need more resources for addressing the huge infrastructure deficit, they need to look at newer avenues of resource mobilization and municipal Bonds are such potential tool. Such mobilization methods are under used which needs to change in the context of capital intensive urban transformation.
Also Venkaiah Naidu spoke regarding loan waivers that are trending in all states day by day; he said that "Loan waiver has become fashion now. It should be waived but in extreme situations only. It's not a final solution. You have to take care of systems. The farmers should be taken care in distress."
Further Naidu said that our cities are now adopting new language in the form of Credit Rating, Value Capture Financing, Transit Oriented Development etc for mobilization of resources. A good beginning has been made over the last three years and we have miles to go still. Naidu complimented Pune Municipal Corporation for becoming the first civic body to revive municipal bonds after a long period of lull.
Lauding Maharashtra Chief Minister Devendra Fadnavis and his government for their support in this regard, he said that Pune alone is now set to mobilize about Rs. 2,300 Cr of which it has already got Rs.200 Cr in the first tranche. The Minister expressed satisfaction that SEBI has come out with necessary guidelines in this regard in July, 2015 and Pune is the first to come out with bonds.