Hubli
The Hubli-Dharwad Municipal Corporation (HDMC) is planning to raise funds through municipal bonds to support its development projects. This move makes Hubli-Dharwad the first tier II city in Karnataka to pioneer the issuance of such bonds, a financial instrument that very few urban local bodies in India currently utilize.
The proposal for the issuance of municipal bonds will be discussed and presented at the upcoming HDMC general body meeting for approval. The central government has been actively encouraging municipalities to tap into the debt market, as part of a broader push to enhance financial autonomy and reduce reliance on state or central government funds. This initiative aligns with the nation’s growth strategy.
Sources reveal that the Department for Municipal Administration (DMA) has hired a consultant to prepare a detailed report on the issuance of municipal bonds by HDMC. The corporation will also receive incentive grants and funds from the Amrut Yojana upon launching the bonds. These funds are expected to be used for various purposes, including infrastructure projects, land acquisition, and settling government debts.
Vijay Kumar, the in-charge Superintending Engineer, mentioned that the Government of India would provide incentives under Amrut 2.0 for local bodies that implement financial stability reforms. The proposal will be presented to the general body for approval, after which a detailed project report will be prepared.
