PMC plans to issue Rs200-crore municipal bond

Patna: Patna Municipal Corporation (PMC) is set to move towards financial self-reliance with plans to issue municipal bonds worth around Rs 200 crore in the 2026-27 financial year.

Preparations are underway for a formal launch in April with the corporation currently working on securing the required certifications and approvals.

General people and institutions are expected to be able to invest in the bonds about four months after the initial issuance.PMC commissioner Yashpal Meena said the initiative would strengthen the corporation’s financial management. “It is going to help the municipality in terms of financial prudence and management,” he said.

Meena will head the newly constituted Bond Issuance Committee, which will oversee the entire process, including fixing interest rates and finalising terms with intermediary agencies.A senior PMC source, who did not wish to be named, said the bond issue would address the recurring problem of projects being delayed due to administrative approvals at the state or central level. The source said that at present, proposals have to be sent to various govt departments and work can only begin after approvals are received.

With its own funds, the PMC would be able to start and complete projects independently, avoiding interruptions caused by funding delays.The corporation has already made progress on the technical groundwork required for issuing the bond, including finalising a merchant bank to handle documentation and structural aspects. On the legal front, the PMC is in discussions with specialised firms to comply with Securities and Exchange Board of India regulations and to complete the listing process on the National Stock Exchange.

The legal adviser for the bond and SEBI-related work is in the process of being finalised.The Bond Issuance Committee will include the additional municipal commissioner, deputy municipal commissioner, chief municipal engineer and executive engineer. Funds raised through the bond will be used for key urban infrastructure projects, including road construction and repairs, sewerage and drainage systems, water supply expansion and street lighting.With this move, the PMC will join a select group of civic bodies such as Pune and Ahmedabad that have accessed capital markets. For investors, the bond offers a fixed-interest instrument backed by a local govt body.