Pune development body aims to raise Rs 1,050 crore from civic bonds

The Pune Metropolitan Regional Development Authority (PMRDA) has started working on its proposal to issue municipal bonds. Kiran Gitte, the metropolitan commissioner and CEO of PMRDA, said the plan is to raise about Rs 1,050 crore from the bonds. PMRDA is planning to hold a meeting with merchant bankers who may be interested in managing the civic bonds issue after the development authority’s credit rating process is completed. “Our rating is good. Therefore, we are sure that we will get the desired amount,’’ said the PMRDA commissioner. Rating agencies have also been invited to rate the issue and eight merchant bankers have expressed interest in the project, said Gitte. While the PMRDA already has a balance of Rs900 crore in its kitty, the authority will need more funds to commence its major projects — including the town planning scheme, the Pune-Mumbai Hyperloop, the ring road, the metro and land acquisitions for several other projects. The PMRDA has asked the merchant bankers to present their proposals on raising funds for PMRDA via the municipal bonds. While initially, the PMRDA aims to raise Rs 1,050 crore, the amount could later be increased depending on the requirement, said the officials.