UP Approves Municipal Bonds For Gorakhpur, Moradabad

In a significant move to enhance urban infrastructure funding, the Uttar Pradesh government has approved the issuance of Municipal Bonds for Gorakhpur Municipal Corporation and Moradabad Municipal Corporation. The decision was taken in a Cabinet meeting chaired by Chief Minister Yogi Adityanath on July 6.

The approval will enable both Municipal Corporations to mobilise resources from the market for urban infrastructure development. Finance Minister Suresh Kumar Khanna stated that the objective of the state government is to make urban local bodies financially more capable and self-reliant. He added that the government aims to strengthen financial management, promote market orientation, and enhance the creditworthiness of urban local bodies.

The Government of India will provide incentive assistance for raising funds through Municipal Bonds. Under this scheme, there is a provision for a grant of Rs 13 crore for bond issuances of up to Rs 100 crore and a maximum grant of Rs 26 crore for bond issuances of up to Rs 200 crore. All Municipal Corporations issuing Municipal Bonds will comply with the provisions prescribed by the Securities and Exchange Board of India (SEBI).

The proposals have been made for Gorakhpur Municipal Corporation to issue Municipal Bonds worth up to Rs 80 crore and Moradabad Municipal Corporation to issue Municipal Bonds worth up to Rs 50 crore. Both Municipal Corporations have obtained approval from their respective Municipal Corporation Houses and have also selected the relevant projects. This move is expected to give fresh momentum to infrastructure development in both cities and further strengthen the financial capacity of the urban local bodies.

The decision is part of the AMRUT 2.0 reforms and projects, which encourage urban local bodies to issue Municipal Bonds. The UP government's approval is a significant step towards achieving the objectives of AMRUT 2.0, which aims to improve urban infrastructure and civic amenities. With the issuance of Municipal Bonds, Gorakhpur and Moradabad Municipal Corporations will be able to access funds from the market, enabling them to undertake infrastructure development projects and improve the quality of life for their citizens.

The impact of this decision will be significant, as it will enable the Municipal Corporations to undertake projects that will improve the urban infrastructure, such as roads, bridges, and civic amenities. This, in turn, will have a positive impact on the economy and the quality of life of the citizens. The UP government's move is expected to set an example for other states to follow, and it will be interesting to see how the issuance of Municipal Bonds will shape the urban infrastructure landscape in the country.

In the coming days, the Municipal Corporations will work towards issuing the bonds and selecting the projects that will be undertaken. The UP government will provide the necessary support and guidance to ensure that the process is smooth and efficient. With the approval of the Municipal Bonds, Gorakhpur and Moradabad are poised to witness significant infrastructure development, which will have a lasting impact on the cities and their citizens.