GVMC will raise Rs 150 cr. for UGD project by floating bonds

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GVMC will raise Rs 150 cr. for UGD project by floating bonds


In Visakhapatnam, the Andhra Pradesh Capital Region Development Authority has issued Close on the heels of the bonds and the state government has recently accorded its approval to GVMC to raise Rs 150 crore for the hybrid sewerage project in Gajuwaka-Pendurthi-Malkapuram temporary by municipal bonds. As part of the project, a total of 85,000 households in Gajuwaka, Malkapuram, and Pendurthi will be brought under the underground sewerage network.

The estimated cost of the total project is about Rs 762 crore and in the first phase of the project that covers Pendurhti Rs 412 crores are to be spent, the GVMC will raise by floating bonds about Rs 150 crore. As term loans, the remaining funds for the GVMC will mobilize by the Andhra Pradesh Urban Infrastructure Asset Management Ltd. (APUIAML). In the first phase, 226 km sewer lines will be laid that will cover about 15,000 households in Pendurthi.

Better rating of a ULB means a good financial condition to repay the funds, which it mobilizes from various funding agencies.

They have initiated the process to float municipal bonds to raise Rs 150 crore said that GVMC commissioner M Hari Narayanan.

He also added that “The bonds may be issued in the next two months.”

In 2007-08, the GVMC had floated the bonds to raise funds for the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) project.

Source: The Time of India



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