Hyderabad: Urban local bodies (ULBs) around Greater Hyderabad are looking for funds just like GHMC. The urban bodies are considering selling bonds to raise money for development. The Director of Municipal Administration has invited rating agencies to help with this.
GHMC has already used municipal bonds to raise close to Rs 500 crore for infrastructure projects, including SRDP works. The response from the public has been positive. Now other ULBs, such as corporations and municipalities, are following GHMC’s lead.
Municipal bonds are debt securities issued by state and local governments to finance public projects like highways and bridges. The Pooled Finance Development Fund (PFDF) scheme was launched by the Centre to help medium and smaller municipalities access the capital market through municipal bonds. Fourteen ULBs, including Bandlaguda Jagir Corporation, Manikonda, Boduppal, and others, are planning to raise funds this way.
ULBs need to show good performance in development works to attract investors. Many ULBs have been successful in collecting property taxes recently. For example, Nizampet Corporation set a target of Rs 64 crore and achieved Rs 53 crore, while Dundigal Municipality achieved 72% of its Rs 28.34 crore target. Manikonda and Badangpet Municipal Corporation also saw good results. Officials hope that agencies will give positive reports on the ULBs, allowing them to develop further with the funds raised.
