Kochi: The cash-strapped Kochi corporation has initiated steps to float municipal bonds to raise funds for various development projects. Corporation authorities have begun preliminary measures for issuing these bonds, and the process will be expedited after the model code of conduct for the assembly elections is lifted.
Plans for Bond Issuance in 2026-27
Corporation authorities plan to float municipal bonds and raise funds within this year itself. A city corporation team led by Mayor V K Minimol met officials from the Union Ministry of Housing and Urban Affairs last month. Ministry officials have promised full support for the issuance of municipal bonds, according to city corporation sources. The ministry officials will provide training to corporation officials on the procedures for floating the bonds.
"We need to raise funds for implementing various development projects and sustaining the already achieved targets. So, we are exploring the possibilities of issuing municipal bonds. We have included the proposal for issuing bonds in our budget for 2026-27," said Minimol.
Monitoring Committee Formed
Deputy Mayor Deepak Joy, Corporation Secretary P S Shibu, and Standing Committee Chairman Antony Painuthara also participated in the discussions with ministry officials. Corporation authorities have formed a monitoring committee and have assigned separate tasks to each official to ensure that the proposals announced in the budget are implemented in a time-bound manner.
"Ensuring the development of a city like Kochi cannot be done through tax revenue alone. That is why we decided to issue municipal bonds. We have received the nod from the Securities and Exchange Board of India (Sebi) for issuing municipal bonds. Now, we have entrusted the Centre for Heritage, Environment and Development (C-Hed) with identifying a bank with which we can associate for floating the bonds," said Joy.
"Sebi has set certain guidelines for issuing municipal bonds. Kochi corporation officials have been asked to begin steps to float the bonds as per the guidelines," he added.
Learning from Successful Models
As part of preliminary steps, corporation officials will study the successful models of other local bodies across the country that have already issued municipal bonds. If needed, they will also communicate with these corporations. Municipal bonds help local bodies raise funds for implementing development projects by accepting direct investments from stock markets and the public, rather than relying solely on traditional government grants and tax revenue.
Now, the corporation will have to deploy a rating agency to assess its financial status. The funds will be raised by listing the municipal bonds on stock exchanges in compliance with Sebi regulations.
