INDORE: Following the footsteps of urban bodies like Hyderabad and Pune, Indore Municipal Corporation IMC ) is now all set to raise money through bonds.Civic body authorities said that they aim to raise Rs 170 crore by issuing municipal bonds . This sum will be spent in execution of projects proposed under Atal Mission for Rejuvenation and Urban Transformation (AMRUT) mission.“IMC will start issuing bonds from June 25. It would be raising Rs 170 crore for implementation of projects like water supply, sewerage treatment plant, green space and public transport,” IMC commissioner Asheesh Singh told TOI.He said that total cost of these projects sanctioned under AMRUT would be around Rs1000cr. “Seventeen per cent of this amount has to come from local body and rest will be funded in the form of grant by Centre and state government,” he said.Singh further said that all these projects require significant capital owing to which it has to be funded by borrowing from banks or market. “Releasing bonds was the most convenient and easy option to arrange for funds,” he said, adding that IMC has also got approval from National Stock Exchange (NSE) to release bonds.Detailing about the bonds and associated rate of interest, civic body officials said that these bonds will be released under Municipal Bond Scheme in which Centre will also provide around 13 per cent interest subsidy. “The civic body will have to bear a nominal 2 per cent interest rate,” they said.Civic body officials on Monday had a meeting with investors to gather information related to their expectations.“Our focus was on selling municipal bonds on minimum rate of interest. We are sure that we can raise funds through bonds as IMC has AA credit rating,” officials said.These bonds will be available for NSE investors. They would be tradable and redemption period would be around 7 years.

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