Funding for key infrastructure projects will be mobilised via municipal bonds floated by the Corporation.

Tilak, Chennai

31st December 2014

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Hi Tilak,
As per my knowledge, the civic body will issue the bonds during the next financial year to meet the rising expenses for infrastructure. The Corporation is unable to mobilize funds for massive infrastructure projects because of under-assessment of property tax. Councilors stressed the need for preventing this.

subramanya, Chennai

31st December 2014

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Hi Mr Tilak,
The issue of these bonds is expected to mobilize a big chunk of the Rs. 26,000 crore required for infrastructure development in the next 10 years. As per Chennai Corporation authority, they have not increased tax rates for many years and the current revenue generation is inadequate for developing infrastructure. they have to increase the per capita spending on infrastructure to Rs. 7000 per annum. Currently, it is less than Rs. 2,000. Planners have zeroed in on municipal bonds as the solution, . Currently, the debt carrying capacity of Chennai Corporation is fixed at Rs. 1,800 crore.

Priya Sharma, Chennai

31st December 2014

In my point of view, a debt service reserve fund with the support of the World Bank will soon be created. If we have Rs. 60 crore through such means, we may receive debt financing of at least Rs. 300 crore.

We will get credit rating from agencies shortly. Intermediaries will start work on tapping the bonds market, said the corporation official.

Pavan kumar, Chennai

31st December 2014