municipal bonds

It was in 1997 that Bangalore city corporation issued the first municipal bond in India, backed by a state government guarantee. The next year, Ahmedabad issued bonds worth Rs 100 crore, without government guarantee. But the momentum didn’t pick up - bonds worth only about Rs 1500 cr have been issued overall since then, and there have been no issues in the more recent years. Last June, however, Pune Municipal Corporation (PMC) became the first city to issue bonds after a long gap. Bonds worth Rs 200 cr were issue to fund PMC’s 24X7 water supply project. Then again, in…

India’s urban population has grown by 32% from 2001 to 2011 as compared to an 18% growth in total population of the country. As per Census 2011, 31% of the country’s population (377 million people) live in cities, and contribute to 63% of the country’s GDP. The urban population is projected to grow up to 600 million by 2031. With increasing urban population, the need for providing better infrastructure and services in cities is increasing. The government has introduced several schemes to address different urban issues.  These include the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Smart Cities Mission, Heritage City Development…