Mumbai, March 9 (NationPress) Maharashtra Chief Minister Devendra Fadnavis announced on Monday that municipal corporations could secure vital financing for a range of development initiatives by issuing bonds in the capital market. He emphasized the creation of "Innovative Funds," akin to the model established by the Nashik Municipal Corporation (NMC), which would greatly enhance urban development financing.

This statement came during the ceremonial ‘Ringing of the Bell’ at the National Stock Exchange (NSE), celebrating the listing of the Nashik Municipal Corporation’s Green Bond.

CM Fadnavis remarked that the Nashik Municipal Corporation has effectively accessed the capital market by issuing municipal bonds through both private placements and public offerings within a single fiscal year.

He stressed that municipal authorities should tap into capital markets to finance public welfare endeavors. "The Central Government has already launched initiatives to assist with this. Initially, approval was granted for bonds up to Rs 200 crore. Due to their success, the budget ceiling for these bonds has been raised to Rs 1,000 crore, with incentive amounts elevated to Rs 200 crore," he stated.

The Chief Minister pointed out that developmental projects costing around Rs 25,000 crore are currently in progress in the Nashik metropolitan region, gearing up for the Kumbh Mela.

He noted that the infrastructure being developed will not only serve the mega-event but will also elevate Nashik to the status of a developed metropolis, transforming the city into a "magnet for investment."

The Nashik Municipal Corporation has achieved the leading position in both phases of this initiative. With the help of central government incentives and the Urban Challenge Fund, the NMC will receive interest-free financing. These resources will be allocated toward public interest water supply projects, targeting a reduction in water leakage from 47 percent to 20 percent.

CM Fadnavis proposed that smaller municipal corporations statewide should unite to issue collective bonds worth Rs 1,000 crore to take full advantage of central schemes. He urged the NMC to persist in its commitment to qualitative urban development through innovative funding.

A government release indicated that funds raised through these bonds will be directed towards crucial infrastructure projects, including the expansion of the Mukane Dam Pumping Station, the establishment of a new Water Treatment Plant at Vilholi, and the installation of a primary gravity line from the Vilholi plant to Sadhugram. The primary goal is to ensure a clean and safe drinking water supply for Nashik's residents during the Kumbh Mela and for the city's future.