HYDERABAD, Telangana: Following the Greater Hyderabad Municipal Corporation (GHMC), 14 other urban local bodies in Telangana are planning to issue pooled municipal bonds to raise funds for infrastructure development in the state. GHMC issued municipal bonds, back in 2018 to raise ₹495 crores for executive works.
The Commissioner and Directorate of Municipal Administration (CDMA) have invited various qualified and experienced credit rating agencies to submit proposals for rating the Pooled Finance Development Fund (PFDF) bond issue. The method is adopted to finance crucial urban infrastructure projects in the participant ULBs.
The move has been introduced since large municipalities that tried to build their individual capacity lack the planning vision which could be sustained in the long run. On the other hand, smaller civic bodies do not have a market size to issue bonds. They also lack an internal system to tap market borrowing.
The list of 14 ULBs includes Nizampet Municipal Corporation, Badangpet Municipal Corporation, Meerpet Municipal Corporation, Peerzadiguda Municipal Corporation, Boduppal Municipal Corporation, Bandlaguda Jagir Municipal Corporation, Manikonda Municipal Corporation, Narsingi Municipal Corporation, Dundigal Municipality, Ameenpur Municipality, Nagaram Municipality, Tellapur Municipality, Shamshabad Municipality, and Greater Warangal Municipal Corporation.