Publication Type:Legal Ruling
Source:Office Memorandum, Ministry of Urban Development, Government of India, New Delhi, India (2016)
Smart Cities Mission Guideline No.10.1 envisages that the States/ULBs shall ensure that a substantial rvenue stream is made available to the Special Purpose Vehicles so as to make them financially self-reliant. One way to do this is to enable ULBs to float bonds in order to access external finance for big infrastructure projects. As a first step, credit rating of ULBs has been started. The next step is to enable ULBs to float 'municipal bonds' and for this handholding support in the process of Transaction Advisories' (TA) is required.
The Ministry of Urban Development has empanelled 09 (nine) Transaction Advisory Firms to provide technical assistance to ULBs in issuing municipal bonds for Smart City Projects. The list of empanelled Transaction Advisory Firms is annexed. Based on the findings of the credit ratings of ULBs, the Transaction Advisory Firms will enable ULBs to issue municipal bonds within regulatory framework developed by SEBI.