100 Crore bond issued by Vadodara Municipal Corporation got subscribed 10 times, so the bond issued by Vadodara Corporation is now becoming a guide for other corporations in the country, in view of which SEBI recently conducted Eastern Region in Bhubaneswar Vadodara’s chief accountant Santosh Tiwari was called to guide the bonds in the corporation’s meeting. Shalini Agarwal, the then Municipal Commissioner of Vadodara Municipal Corporation, issued the bonds in Vadodara Corporation. Got a prominent position in the country by getting ten times the amount as against 100 crores.
Keeping in view the fact that the Central Government is continuously extending assistance under various projects to take measures to make the corporations of the country self-reliant, it has been decided to issue municipal bonds to finance and provide for the cost of development works. . In order to provide necessary facilities to the people, it was decided to organize, according to which, during the issue of bonds, workshops are being organized on the Municipal Bond Outreach Program in each area.
In a recent workshop held in Bhubaneswar, guidance was provided to merchant bankers, credit ratings, legal trustees, stock exchanges, investors across the country on how to process bonds. The workshop was attended by representatives from 10 North Eastern states and 22 cities that have not issued bonds.
Santosh Tiwari, Chief Accountant of Vadodara Municipal Corporation, in a workshop organized by SEBI on Municipal Bonds, said that bonds are necessary to make corporations self-reliant. He said that 10 times the deposit amount was received on the bond of 100 crores and it was decided to pay 7.15 percent interest, in which central government has announced to give 13 crores intensive, due to which Vadodara Corporation has to pay only 4.55 percent interest rate. have to pay.
Regarding the work done by the Vadodara Corporation for the bond, the Chief Accountant said that the balance sheet of the last six years of the Vadodara Corporation was pending, which was completed in just one and a half year and the credit data was given to the company, after which the credit rating was obtained. The income was increasing, due to which the old loan was being repaid on time. As a result the payment history has also been very good. He said that the online services including drainage, storm drain cleaning were also very good. Necessary funds were collected for Amit Nagar APS Sindhrot Water Project and negative information about ongoing legal matters arbitration etc. was also given to all the investors before issuing the bonds.
He said that now there is a possibility of getting Rs.100 crore in the form of green bonds under water project in Amritam Yojana Part II next year, out of which intensive Rs. 10 crores will be sanctioned. Now he has advocated issuing bonds to all the municipal corporations to become self-sufficient.
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