MAHAKUMBH NAGAR: The Uttar Pradesh Cabinet on Wednesday approved the issuance of municipal bonds for the municipal corporations of Prayagraj, Varanasi and Agra, along with the provision of funds for infrastructure development. The cabinet meeting chaired by Chief Minister Yogi Adityanath was held in the Maha Kumbh Mela area in Prayagraj.
“Through these municipal bonds, the funds will be raised from the market, with a grant of Rs 13 crore provided for every Rs 100 crore raised. The government of India will deposit the incentive amount into an escrow account,” an official statement said.
“Additionally, municipal bonds of up to Rs 50 crore each will be issued for Agra, Prayagraj, and Varanasi. This initiative aims to bolster the infrastructure development in these key cities,” it said.
When a municipal corporation issues a bond for development works, it essentially raises funds from investors to finance various infrastructure and development projects.
By issuing bonds, municipalities can access a larger pool of capital than they would through traditional funding sources, and use it for long-term infrastructure projects that contribute to the city’s growth and development.
Adityanath noted that in UP, it has been done previously by municipal corporations of Lucknow and Ghaziabad.
In the cabinet meeting, the government also approved a new residential project in Agra.
Additionally, the Agra Development Authority’s proposal for a 100-metre-wide inner ring road and land parcel scheme has also been approved.
The cabinet has also approved an ex-gratia amount of Rs 204.34 crore to cover the difference between the 2010 circle rate and the current circle rate for 442.4412 hectares of land in Agra, it said.
Furthermore, the proposal to amend the notification by the Uttar Pradesh State Industrial Development Authority to separate the industrial development areas of villages Rahankala and Raipur has been agreed upon.
“This amendment will enable the Agra Development Authority to create a land bank for residential planning, ensuring the planned development of the area,” the statement said.
