Mumbai BMC plans municipal bonds to fund 2.13L cr infrastructure
Mumbai's civic body, BMC, is gearing up to launch municipal bonds to help finance its ₹2.13 lakh crore infrastructure pipeline.
It will bring in a merchant bank to handle the details, like setting interest rates and repayment plans, and has started the process of getting their credit rating checked so they can borrow from the market.
BMC 81,774 cr reserves, 39,500 usable
Even though BMC has reserves of ₹81,774 crore, less than half, ₹39,500 crore, is actually available for new projects because much of it is locked up in pensions and security deposits.
To keep building and improving Mumbai, they need fresh funding options.
BMC proposes 5,000-10,000 cr green bonds
BMC also wants to issue green bonds worth ₹5,000 to ₹10,000 crore for eco-friendly projects like wastewater plants in Dharavi and Versova, desalination facilities, water tunnels, and the Gargai dam.
This ties in with government incentives for cities that raise big amounts through municipal bonds.