AHMEDABAD: The state government has in spite of everything allowed the Ahmedabad Municipal Corporation to issue bonds, value Rs 200 crore. These AMC bonds shall be taxable bonds.
This is the first time the AMC will issue taxable bonds. AMC officers mentioned the AMC has in its price range for financial year 2018-19 sought to issue bonds for Rs 200 crore, for building works.
After the price range was once cleared, the AMC sought permission to issue bonds from the state government, which the federal government in spite of everything licensed on Thursday.
Municipal commissioner Vijay Nehra mentioned that in 2017 the CRISIL and India Rating (Fitch) upgraded AMC bonds to AA (strong) from AA- (minus). He mentioned that the AA ranking indicated a top level of capability to honour debt obligations.
Nehra mentioned that because the bonds shall be issued to finish projects underneath the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), the Centre will give the AMC an interest subsidy of Rs 26 crore.
The finances won from the bonds will assist the corporation pay its proportion for works underneath the AMRUT scheme.
Nehra mentioned that is the first time taxable bonds are being issued by way of the corporation. He mentioned that the proposal will now move to the Union government for approval. Once licensed, the bonds shall be issued in March 2019.
The AMC was once the first corporation in Asia to issue bonds, when it made borrowed Rs 100 crore in 1998. The AMC has issued bonds for Rs 358 crore on 4 other events, including 1998.
Nehra mentioned that AMC’s repayment of all its bonds has been on time.
This is the first time the AMC will issue taxable bonds. AMC officers mentioned the AMC has in its price range for financial year 2018-19 sought to issue bonds for Rs 200 crore, for building works.
After the price range was once cleared, the AMC sought permission to issue bonds from the state government, which the federal government in spite of everything licensed on Thursday.
Municipal commissioner Vijay Nehra mentioned that in 2017 the CRISIL and India Rating (Fitch) upgraded AMC bonds to AA (strong) from AA- (minus). He mentioned that the AA ranking indicated a top level of capability to honour debt obligations.
Nehra mentioned that because the bonds shall be issued to finish projects underneath the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), the Centre will give the AMC an interest subsidy of Rs 26 crore.
The finances won from the bonds will assist the corporation pay its proportion for works underneath the AMRUT scheme.
Nehra mentioned that is the first time taxable bonds are being issued by way of the corporation. He mentioned that the proposal will now move to the Union government for approval. Once licensed, the bonds shall be issued in March 2019.
The AMC was once the first corporation in Asia to issue bonds, when it made borrowed Rs 100 crore in 1998. The AMC has issued bonds for Rs 358 crore on 4 other events, including 1998.
Nehra mentioned that AMC’s repayment of all its bonds has been on time.
Gujarat allows AMC to issue taxable bonds
![Gujarat allows AMC to issue taxable bonds]()
Reviewed by Kailash
on
November 30, 2018
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