Pooled municipal bonds to finance priority urban infrastructure projects in ULBs
The Andhra Pradesh government has accorded in-principle approval for the ₹1,010-crore Pooled Municipal Bond Issuance Framework, paving the way for urban local bodies (ULBs) to
The Andhra Pradesh government has accorded in-principle approval for the ₹1,010-crore Pooled Municipal Bond Issuance Framework, paving the way for urban local bodies (ULBs) to access capital markets for infrastructure development. The initiative, one of the State's biggest reforms in urban financing, aimed at reducing dependence on the government grants, while strengthening municipal finances, transparency and governance, said a statement issued on Saturday by S. Suresh Kumar, Principal Secretary, Municipal Administration and Urban Development. The proposed framework envisages mobilising the amount through pooled municipal bonds to finance priority urban infrastructure projects worth about ₹1,123 crore across participating municipalities.
The funds will be utilised for projects such as drinking water supply, sewerage networks, roads, storm-water drains, solid waste management, street lighting and other civic infrastructure. Suresh Kumar says the initiative aligns with the Swarna Andhra-2047 vision of building clean, resilient and economically vibrant cities through sustainable urban development. By enabling municipalities to raise long-term institutional finance, the government expects to create a financially empowered urban governance system, while encouraging reforms in municipal accounting, revenue generation, credit ratings and financial transparency. The State has also announced the constitution of a high-level Screening Committee, headed by the Principal Secretary, Municipal Administration and Urban Development, to oversee bid evaluation, selection of the merchant banker and implementation of the bond programme.
The Andhra Pradesh Urban Infrastructure Asset Management Limited (APUIAML) will provide technical and secretarial support to the committee. Municipal Administration and Urban Development Minister P. Narayana has described the initiative as a major structural reform, stating that the growing infrastructure needs of cities can no longer be met through budgetary resources alone. He says the programme will enable municipalities to mobilise long-term resources, improve their creditworthiness and attract institutional investment, while delivering better civic amenities. Suresh Kumar says the pooled framework will help build an investor-ready municipal ecosystem by strengthening governance, financial disclosures, revenue management and institutional capacity.
The BriefWire