Overview
- The state gave in-principle approval on July 11 for a pooled municipal bond issuance framework that targets roughly ₹1,010 crore in mobilised finance for urban projects.
- Proceeds are earmarked for priority civic works across participating Urban Local Bodies, including drinking water, sewerage, roads, storm drains, solid-waste management and street lighting for projects totalling about ₹1,123 crore.
- A high-level Screening Committee led by the Principal Secretary will oversee bid evaluation and select a merchant banker, with technical and secretarial support from Andhra Pradesh Urban Infrastructure Asset Management Limited.
- Greater Visakhapatnam Municipal Corporation has been positioned to explore green-bond options for climate-resilient and water‑efficient projects and the plan aligns with a Union Budget incentive for single municipal issuances above ₹1,000 crore.
- The framework aims to strengthen municipal accounting, revenue collection, disclosure and creditworthiness so smaller towns can attract institutional investors, with the next steps to watch being merchant-banker appointments, credit ratings and the first bond issuance.