Patna, Nov 10 (SocialNews.XYZ) The Patna Municipal Corporation (PMC) has raised nearly Rs 200 crore through municipal bonds, becoming the first urban local body in Bihar to have its bonds listed on the National Stock Exchange (NSE).
A formal ceremony was held on Tuesday to mark the listing, with Chief Minister Samrat Choudhary inaugurating the process by ringing the ceremonial bell.
The bond listing is being viewed as a significant step towards strengthening the financial independence of urban local bodies and creating alternative funding mechanisms for infrastructure development.
It is the first time that the PMC has raised funds directly from the capital market through municipal bonds, reducing its dependence on government grants and conventional revenue sources.
The bond issue had a base size of approximately Rs 100.03 crore. Bidding was conducted on October 30 through the NSE's electronic platform, attracting investor demand exceeding Rs 205 crore.
Following the strong response, the issue size was increased to nearly Rs 200 crore, enabling the corporation to raise Rs 199.99 crore.
The bonds carry an annual interest rate of 9.20 per cent and have a tenure of 10 years.
The corporation will make quarterly interest payments during the first four years.
Thereafter, repayment of the principal and interest will be made in quarterly instalments.
The maturity dates for different tranches are scheduled between 2030 and 2036.
The funds will primarily be used to develop urban infrastructure, including vending zones, commercial complexes, parking facilities, marriage halls and community amenities.
Patna Mayor Sita Sahu said the corporation plans to execute 18 development projects at 15 locations across the city.
"These include 12 vending zones, two marriage halls, one parking facility, one commercial complex, one hotel and one community centre," Sahu said.
"The objective is to organise the city's currently unplanned street-vending activities and provide better civic amenities. Designated vending spaces will help reduce encroachment on roads and footpaths, improve traffic movement and bring greater order to markets," Sahu said.
Of the 15 sites, 10 are located on land owned by the municipal corporation, four on land belonging to the Road Construction Department and one on land owned by the Bihar State Housing Board.
The estimated cost of the projects is Rs 270.45 crore. While approximately Rs 200 crore will come from the bond proceeds, the remaining amount will be met from the corporation's internal resources.
The projects are expected to be completed within six months to 18 months.
The facilities are also expected to generate additional revenue for the corporation through shop rentals, parking fees, marriage hall bookings and other commercial activities.
Addressing the ceremony, Samrat Choudhary said strengthening Bihar's economy and keeping pace with global developments were key objectives of the government.
He described the expansion of the bond issue from its initial size of around Rs 100 crore to nearly Rs 200 crore as a significant achievement.
He also said Bihar had faced economic setbacks following the state's bifurcation, but had made progress since 2005 through the efforts of former Chief Ministers Nitish Kumar and former Deputy Chief Minister Sushil Kumar Modi.
Source: IANS
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