The proposal was put forward by SMC commissioner S Jagdeesan before minister for urban development Parmananad Khattar during the latter's visit here.

Jagdeesan told The Financial Express that it was during their discussion over alternative routes to raise funds for development works like roads, flyovers, drinking water supply and sewer disposal projects that they struck the idea of issuing bond. He said the modalities could be discussed in consultation with prospective fund managers. Ahmedabad was the first civic body in the country to raise Rs 100 crore Bond two years back for redemption on the third, fifth and seventh year, with the lead manager providing the escrow cover, directly collecting octroi from select points.

Like Ahmedabad, arguedJagdeesan, SMC too has turned corner for the last two financial years and has increased its rating among the FIs. Several commercial banks have promised and some have already disbursed loans to SMC for its capital works.

Jagdeesan said SMC has also initiated steps to sell 36,500 sq metre prime land on Ring Road, known as Transport Godown, to construct a commercial complex which might fetch the corporation at least Rs 175 crore. He asserted that utmost transparancy is being maintained in issuing and finalising tender documents.