Government Vision for Municipal Bonds
Shri Srinivas Katikithala, Secretary, MoHUA, outlined the Government’s vision for empowering cities through innovative financing. He emphasised the critical role of municipal bonds in supporting urban infrastructure, improving service delivery, and increasing the financial autonomy of cities.
Ms. D. Thara, Additional Secretary, MoHUA, shared insights from previous municipal bond issuances and stressed the need for ongoing capacity building, strong financial management, and institutional frameworks to enable more cities to access the bond market.
Perspectives from Regulators and Market Experts
Shri Pramod Rao, Former Executive Director, SEBI, highlighted the regulatory viewpoint and emphasised the need for a conducive environment for municipal bond issuances. Shri Suprio Banerjee, Vice President & Co-Group Head, ICRA, discussed the importance of credit ratings, fiscal discipline, transparency, and robust revenue streams for ULBs.
Shri Umesh Khandelwal, Chief Business Officer, TIPSON Group, presented perspectives from transaction advisory, focusing on structuring intermediaries and merchant bankers for successful bond issuance. Shri Sashi Krishnan, Director, NISM, provided broader context on developing a vibrant municipal debt market in India. The session was moderated by Dr. Dhiraj Jain, Professor, NISM.
Strengthening Urban Finance and Resilience
The deliberations highlighted that municipal bonds are vital for mobilising resources for urban infrastructure projects, improving fiscal autonomy, and achieving sustainable urbanisation. Stakeholders discussed expanding investor participation, enhancing the creditworthiness of ULBs, and scaling up bond issuances to more cities across India.
MoHUA reiterated its commitment to collaborating with all stakeholders to build a robust municipal finance ecosystem and promote greater participation of cities in capital markets. The consultation forms part of the Ministry’s ongoing efforts to explore innovative financing tools and strengthen the capacity of ULBs in meeting the growing infrastructure demands of India’s rapidly urbanising landscape.
