Mumbai, March 9 (IANS) Maharashtra Chief Minister Devendra Fadnavis on Monday said that municipal corporations can raise essential funds for various developmental projects by issuing bonds in the capital market, adding that creating “Innovative Funds,” similar to the Nashik Municipal Corporation (NMC) model, will provide a significant financial boost to urban development.

The Chief Minister was speaking after performing the ceremonial ‘Ringing of the Bell’ at the National Stock Exchange (NSE) to mark the listing of Nashik Municipal Corporation’s Green Bond.

Speaking on the occasion, CM Fadnavis noted that Nashik Municipal Corporation has successfully entered the capital market by issuing municipal bonds through both private placement and public offerings within a single financial year.

He emphasised that municipal bodies should leverage capital markets to fund public welfare projects. “The Central Government has already announced schemes to support this. Initially, approval was granted for bonds up to Rs 200 crore. Given the success, the budget limit for these bonds has been increased to Rs 1,000 crore, with incentive values raised to Rs 200 crore,” he stated.

The CM highlighted that developmental works worth approximately Rs 25,000 crore are underway in the Nashik metropolitan area in preparation for the Kumbh Mela.

He remarked that the infrastructure being created is not just for the mega-event but will catapult Nashik into the league of developed metropolises, turning the city into a “magnet for investment.”

Nashik Municipal Corporation has secured the top position in both phases of this initiative. Through central government incentives and the Urban Challenge Fund, the NMC will receive interest-free funds. These funds will be directed towards public interest water supply projects, aiming to reduce water leakage from 47 per cent to 20 per cent, he said.

CM Fadnavis suggested that smaller municipal corporations in the state should collaborate to issue collective bonds worth Rs 1,000 crore to benefit from central schemes. He urged the NMC to continue focusing on qualitative urban development through innovative funding.

According to a government release, the capital raised through these bonds will be utilised for critical infrastructure projects, including capacity expansion of the Mukane Dam Pumping Station, construction of a new Water Treatment Plant at Vilholi and laying of a main gravity line from the Vilholi plant to Sadhugram. The primary objective is to ensure a clean and safe drinking water supply for Nashik residents during the Kumbh Mela and for the long-term future of the city.

–IANS

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