The Nashik Municipal Corporation (NMC) is poised to mark a significant financial milestone for urban development in Maharashtra. On Tuesday, the civic body will hold a bond listing ceremony at the National Stock Exchange's (NSE) Bandra-Kurla Complex in Mumbai, officially listing its Rs 200 crore 'Clean Godavari Bonds 2030 Series-I'.
Oversubscribed Bonds to Fuel Critical Infrastructure
This fundraising initiative is a strategic move to accelerate key projects in the city, especially with the 2027 Kumbh Mela on the horizon. The bonds, issued through a private placement on the NSE's electronic platform, witnessed overwhelming investor confidence, being oversubscribed 3.95 times. The debt instrument carries a five-year tenure and offers a competitive interest rate of 7.8%.
The proceeds are earmarked for several high-priority infrastructure upgrades:
- Sewerage Pipeline Network: A major sewerage network project across Panchavati, Nashik West, and Satpur divisions, estimated at Rs 225 crore. The bond will contribute Rs 168.75 crore to this initiative.
- Ram Jhula Pedestrian Bridge: A cable-stayed bridge over the Godavari river connecting Balaji Kot and Ganeshwadi vegetable market. With a total cost of Rs 25 crore, Rs 19.25 crore will come from the bond.
- Ram Kal Path Phase-II: The second phase of this project, estimated at Rs 25 crore, will receive Rs 12 crore in bond funding.
- Vending Zones: Development of organized vending zones near the prominent Kalaram and Kapaleshwar temples.
Central Grants and Incentives Boost Funding
The successful bond issuance unlocks additional financial support from the central government. The NMC is set to receive an incentive grant of Rs 26 crore from the Union Ministry of Housing and Urban Affairs for tapping the bond market.
Furthermore, if the projects qualify under the Urban Challenge Fund scheme, the corporation can avail central assistance of up to 25% (Rs 68.7 crore) of the total project cost. This combined financial injection is expected to significantly accelerate the rejuvenation of the Godavari river, upgrade civic infrastructure, and enhance overall urban development in preparation for the massive influx of pilgrims during the Kumbh Mela.
High-Profile Ceremony Marks a New Chapter
The bell-ringing ceremony at the NSE will be a notable event, attended by Maharashtra Chief Minister Devendra Fadnavis and Deputy Chief Ministers Eknath Shinde and Ajit Pawar. Their presence underscores the project's importance for the state's development agenda.
By leveraging municipal bonds, the NMC is adopting a modern financing mechanism to fast-track essential projects. This approach not only funds immediate infrastructure needs but also sets a precedent for other urban local bodies in India to explore innovative funding routes for sustainable city development.
