Coimbatore corporation gets approval for municipal bonds worth Rs 150. 85 crore

COIMBATORE: The Coimbatore corporation has received approval for municipal bonds worth Rs 150. 85 crore for infrastructure projects.The municipal administration and water supply department passed a govt order on Aug 26 for the approval of the municipal bonds.

The approval is for the urban local body's contribution to two projects, one for Semmozhi Park and the other for the ongoing Kurichi-Kuniyamuthur underground drainage project.

The corporation had contributed Rs 83.75 crore for the Semmozhi Park construction and Rs 67.13 crore for the drainage project.The corporation had sent a proposal for Rs 150.88 crore and got approval for Rs 150.85 crore. The approval order was placed before the council meeting held on Friday.Commenting on this, corporation commissioner M Sivaguru Prabakaran, said, "The bond will be launched by October because it has to undergo a series of procedures before getting sanctioned. The bond is basically seeking loans, and we shall be able to retrieve the amount we have spent through the corporation's funds on the two projects. The govt provides a repayment period of up to 10 years and provides an approximate of Rs 20 crore incentive on our bond.

This incentive we shall keep for the repayment. In the near future, through these bonds, we can seek funds up to Rs 2,000 crore for various sustainable infrastructure projects and that is the benefit."