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After Lucknow, Varanasi to become second UP city to issue municipal bonds

According to the government, this move is expected to improve the civic body’s public image and help it raise investments from across the world.

By: Express News Service | Lucknow | December 31, 2020 11:30:31 am
Municipal bonds Lucknow, Municipal bonds in Varanasi, UP, Lucknow city news, Indian ExpressUP CM Yogi Adityanath poses with the bull statue at the BSE during the listing ceremony of Lucknow Nagar Nigam bonds at the exchange, in Mumbai, Wednesday, Dec. 2, 2020. (PTI Photo)

Varanasi is getting ready to become the second city in the state after Lucknow whose civic body will raise money through municipal bonds.

This move is part of the state government’s efforts to make municipal corporations in UP self-reliant. The civic body has been given a target of raising Rs 200 crore through the bonds.

In a statement, the state government said the Varanasi Municipal Corporation had started preparing the bonds that would be used to raise the money, and the funds collected would be invested in various infrastructure schemes and in the city’s development.

According to the government, this move is expected to improve the civic body’s public image and help it raise investments from across the world.

The municipal bonds are debt securities issued by the government. It is a sort of credit card using which funds are raised. With the bonds, the civic body will raise money from the market for a fixed time and guarantees to return the principal amount along with interest.

“In Varanasi, the budget of the fund will not only boost the growth of various sectors but will also help in the development of international standards and work. This bond will also help investors to invest in the city and will also promote the tourism sector.

All these activities together will help in the increment of income of the government. The work of development of ghats, ring roads, the Kashi Vishwanath Dham, the Rudraksha Convention Center, flyovers, CNG trains and boats, connectivity of airways and other facilities will be done by this money,” read the government statement.

The civic body’s area has increased, with 89 new revenue villages getting added to its jurisdiction. The corporation is expected to increase its income through various activities and provide new job opportunities. Municipal Commissioner Gaurang Rathi said a consulting firm will be selected for issuing bonds.

The civic body has floated a tender to choose consultancy.

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