GCC to raise funds for infrastructure projects through municipal bonds in 120 days
The Greater Chennai Corporation (GCC) will raise ₹500 crore for infrastructure projects through municipal bonds in 120 days.
A meeting to discuss the preparatory work for floating municipal bonds was held on Thursday, following which the GCC has decided to appoint a transaction advisory. “The GCC intends to raise ₹500 crore initially. We have to be cautious. We will request for the appointment of the transaction advisory this week. Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL) will appoint the advisory for the Chennai Corporation,” an official said.
“Bridges, roads and iconic projects will be our priority,” said the official. After the GCC started conducting meetings with various agencies to float the municipal bonds, the market has also turned favourable, he added. A few years ago, the civic agency began discussions to get external funding for its civic infrastructure projects by floating municipal bonds in the market.
Pointing to the successful implementation of similar civic infrastructure projects in other cities like Hyderabad, the Chennai Corporation announced that it would also raise finances by floating municipal bonds. But the initiative got delayed. In the next few months, the civic officials are expected to explore the feasibility of implementing various projects using municipal bonds.
Many bridges, including the proposal to construct a structure along Valluvar Kottam - Ega Theatre stretch, were shelved years ago owing to lack of funds, as the project estimate crossed ₹1,000 crore. Work on multi modal integration in areas such as Broadway has also been delayed for several years now. Projects under Swachh Bharat Mission 2.0, including waste to energy projects and bio CNG projects, were expected to be taken up.
According to sources, the municipal bonds of the GCC are expected to be offered in a private issue, as a number of qualified financial institutions and high net worth individuals have shown interest to participate.
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Published - September 19, 2024 10:44 pm IST
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