The Pune Municipal Corporation (PMC) is planning to list its bonds at the Bombay Stock Exchange (BSE) on June 22, to raise Rs 2,264 crore for its ambitious 24×7 water supply project. “Pune is set to issue municipal bonds with BSE on June 22,” tweeted Union Urban Development Minister M Venkaiah Naidu.
Municipal Commissioner Kunal Kumar said the PMC was in the process of raising at least Rs 200 crore this year through municipal bonds. “The union government has high hopes from PMC, as it would be the first time a municipal corporation in the country raises funds through municipal bonds,” he said.
Kumar added that the PMC would set a benchmark that would encourage other municipal corporations to explore raising funds through bonds and making a positive impact on investors. “The PMC has a good credit rating and, hopefully, would also get good ratings for its bonds that would increase its demand in the market,” he said.
Before listing its bonds with the BSE, the PMC has also planned an investors’ conference to give investors an overview of its financial situation and the ambitious water supply project, he added. An investor memorandum is being finalised and we have already appointed a registrar, trustee and legal counsel from the BSE panel, said municipal commissioner.
On effective implementation of the water project through the funds, Kumar said the PMC has formed a Project Management Unit (PMU) to implement the ambitious project where the body plans to revamp the entire water supply network.
The project is estimated to cost Rs 3,513 crore and the civic body, after availing funds from various government schemes and its contribution, would raise the remaining Rs 2,264 crore from municipal bonds, in phases.
Implementation would begin with setting up of the new water supply network and metering all commercial connections in the city, he added.