Mumbai, March 9 Maharashtra Chief Minister Devendra Fadnavis on Monday suggested that municipal corporations should explore the possibility of raising ₹1,000 crore through pooled bonds, as this would help smaller corporations raise funds for infrastructure projects.
Speaking at the listing of bonds by the Nashik Municipal Corporation at the National Stock Exchange, Fadnavis urged the municipal corporations to increasingly tap the bond market to fund urban development projects.
Earlier in the day, the Nashik Municipal Corporation (NMC) listed ₹200 crore green municipal bonds on the NSE.
The funds raised by Nashik will be used for water infrastructure projects aimed at reducing water losses in the city from around 47 per cent to nearly 20 per cent, according to the NMC, which will help improve operational efficiency and increase revenue through better billing and utilization.
The reduction in water losses would generate additional revenue for the civic body, strengthening its ability to service the debt raised through bonds, Chief Minister said.
Fadnavis said the Nashik Municipal Corporation has emerged as a frontrunner by issuing both the first municipal green bond and leading in the earlier phase of bond issuances.
He said the incentive provided under the central government's scheme effectively offsets the interest burden on such borrowings, enabling municipal corporations to access long-term funds at affordable rates.
The Chief Minister also urged officials to identify projects from smaller municipal councils and examine whether a pooled bond issue could be structured so that municipalities lacking financial capacity can also access the municipal bond market.
Separately, the chief minister said infrastructure projects worth around ₹25,000 crore are being undertaken in Nashik and the surrounding metropolitan region ahead of the upcoming Kumbh Mela, which will significantly upgrade civic infrastructure in the city.