Maharashtra Chief Minister Devendra Fadnavis on Tuesday, December 2, said that Clean Godavari Bonds were subscribed to four times on the first day of announcement by Nashik Municipal Corporation (NMC). Speaking to the media, CM praised Prime Minister Narendra Modi for giving access to municipal corporations to get funds from the market.
"I am very happy because our Prime Minister Modi always says that our municipal corporations should access the bond market," CM Fanavis said. In view of the upcoming Nashik-Trimbakeshwar Simhastha Kumbh Mela, Clean Godavari bonds were issued.
"Investors subscribed Clean Godavari Bonds by four times which reflect trust in Nashik Municipal Corporation (NMC)," CM said. He said, to issue these bonds, the Central government also gave a big fund of Rs 26 crores in the form of incentives to NMC.
The Nashik civic body held a bond listing ceremony at the National Stock Exchange (NSE) headhunters in Bandra-Kurla Complex (BKC) at 10 am on Tuesday. The NMC to raise Rs 200 crore through "Clean Godavari Bonds 2030 Series-I" to fund key projects, including a sewerage pipeline network, Ram Kal Path Phase-II, the Ram Jhula pedestrian bridge, and vending zones near Kalaram and Kapaleshwar temples in the city.
The bonds, which were issued via private placement on NSE's electronic bidding platform, were oversubscribed on the first day. The bonds will give the investors an interest rate of 7.8% with the tenure set for at least five years. Saucerful investor will get NMC an incentive grant of Rs 26 crore from the Union Minister of Housing and Urban Affairs.
"The funds from our municipal bond issue carry a five-year tenure at a 7.8% interest rate, which is very favourable for a municipal corporation of our size," said NMC Commissioner Manisha Khatri.
Additionally, NMC will receive up to 25% which is Rs 68.7 crore of the total project cost as central assistance if the projects qualify under the Urban Challenge Fund scheme, according to The Times of India. These funds will help Godavari River rejuvenation, civic infrastructure development, urban development in Nashik city and preparation of the Kumbh Mela 2027.
For the 2027 Kumbh Mela, NMC is constructing the cable-stayed Jhula pedestrian bridge across the Godavari River to connect Balaji Kot and Ganeshwadi vegetable market areas. While the total cost of this bridge is Rs 25 crore, NMC will get Rs 19.25 crore through the municipal bond proceeds.