The UP government led by CM Yogi Adityanath in a recent move listed bonds of Lucknow Municipal Corporation worth Rs 200 crore at the Bombay Stock Exchange on Wednesday.
The Lucknow Municipal Corporation now becomes the first Municipal Corporation of North India to issue such a bond. There is a preparation for the rejuvenation of the state capital Lucknow through this municipal bond.
State Urban Development Minister Ashutosh Tandon, who arrived in Mumbai with the CM Yogi Adityanath said that the Central Government will give a subsidy of Rs 26 crore to the Lucknow Municipal Corporation for bringing the bond.
Tandon said that this first municipal bond of UP has subscribed over 225 percent. Now after listing on BSE, it will also be available for trading.
The Urban Development Minister said that the funds raised through bonds will be invested in various infrastructure schemes in the state capital. In the first week of November, the Lucknow Municipal Corporation raised Rs 200 crore by issuing municipal bonds through the BSE Bond platform.
Significantly, the investors will get 8.5 percent annual interest on Lucknow Municipal Corporation bonds and the maturity period is 10 years.
It is expected that the successful launch of this bond will change the picture of Lucknow Municipal Corporation and will also help in raising investment from India and abroad.
With this, the government's municipal bonds of other districts will also be released soon. CM Yogi Adityanath said that there will be no shortage of funds to provide basic facilities to the public after the Municipal Bond is listed on the stock exchange.