Patna Civic Body Raises Rs 200 Crore via Bonds

Bond Listing Ceremony

Patna Municipal Corporation raised nearly Rs 200 crore via bonds on NSE, becoming first urban local body in Bihar to list bonds.

“The bond listing is being viewed as a significant step towards strengthening the financial independence of urban local bodies and creating alternative funding mechanisms for infrastructure development.”

Bond Details

Bonds carry 9.20% annual interest with 10-year tenure and quarterly payments.

Funding Mechanism

Initial issue size of Rs 100.03 crore increased to Rs 199.99 crore due to strong investor demand.

Infrastructure Projects

Funds will develop 18 projects at 15 locations including vending zones, marriage halls, parking facilities and community amenities.

“These include 12 vending zones, two marriage halls, one parking facility, one commercial complex, one hotel and one community centre”

Land Ownership

10 sites owned by municipal corporation, 4 by Road Construction Department, 1 by Bihar State Housing Board.

Project Cost and Timeline

Estimated cost Rs 270.45 crore; projects to be completed in 6-18 months.

Revenue Generation

Projects expected to generate revenue through shop rentals, parking fees and marriage hall bookings.

Chief Minister's Statement

Chief Minister Samrat Choudhary called bond expansion a significant achievement for Bihar's economic progress.

Economic Context

Bihar faced economic setbacks after state bifurcation but made progress since 2005.

Project Implementation

Vending zones will reduce road encroachment and improve traffic movement in Patna.

“The objective is to organise the city's currently unplanned street-vending activities and provide better civic amenities. Designated vending spaces will help reduce encroachment on roads and footpaths, improve traffic movement and bring greater order to markets”