Panel slaps

Urban local bodies ( ULBs) are expected to raise around ` 6,000 crore through the issue of municipal bonds over the next three years, nearly four times the amount raised in last twenty years.

According to Crisil, the government’s move to develop civic infrastructure across the country through the AMRUT and SMART City missions requires significant capital spending by ULBs. These will have to be funded by market borrowings in addition to government grants.

The agency estimates ULBs will have to borrow ` 15,000 crore to fund these projects through fiscal 2023.

Over 20 municipal bodies in India had raised just ` 1,550 crore from the public through bonds.

In June 2017, Sebi notified guidelines on disclosure of financial information by ULBs at regular intervals, and audit of accounts to increase transparency to improve the prospects for municipal bond issuances.

In the same month, the Pune Municipal Corporation raised ` 200 crore by issuing 10- year bonds.

On its part, the government has also announced an interest subsidy scheme to make issuances competitive.

Several ULBs have initiated their bond issuance process by appointing transaction advisors.

“More such issuances are in the offing,” said

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