Municipalities await clarity to raise debt

Municipalities are preparing to issue bonds following a 100 crore incentive for issuances over 1,000 crore, but await guidelines on fund deployment. Several corporations, including Ahmedabad and Brihanmumbai, are planning significant bond issues. The absence of a defined framework for fund usage raises concerns about the effectiveness and repayment of these funds. From a legal perspective, there is no correlation between the issuance and the incentive scheme as municipalities can issue bonds as a form of debt funding, said Anish Mashruwala, a partner at JSA Advocates and Solicitors.  Read more