Work on the first of these townships, Hitech City in Mahalunge, Near Hinjewadi, has taken off and it will have six crore square feet of built-up area.
The plan of the Pune Metropolitan Regional Development Authority (PMRDA) to go in for a bond issue has received a boost, with the authority getting an ‘AA+’ credit rating from Icra.
It has started working on its proposed issue of municipal bonds. The total issue size is expected to be in Rs 1,000 crore to Rs 1,250 crore. The first tranche is expected to be in the region of Rs 250 crore.
Kiran Gitte, who was metropolitan commissioner and CEO of PMRDA and has now moved back to his state cadre , had spearheaded moves to raise money through bonds.
The good ratings for the PMRDA, which has been in existence only for a couple of years and has financial history of three years , are an achievement and show financial stability and diversification. It could be the first such authority to get AA+ rating and go for a bond issue.
They had capability to leverage their financial position and raise around Rs 200 crore every year. 0These funds would be utilised for service roads coming up along the proposed township schemes planned around Pune city.
Initially it was to be funded by the NHAI, but now the PMRDA has been asked to raise its own funds through the ‘Value Capture Finance’ or value unlocking through roads route.
This includes developing roads, townships, auctioning plots, collecting building fees and recovering money invested in roads. Work on the first of these townships, Hitech City in Mahalunge, Near Hinjewadi, has taken off and it will have six crore square feet of built-up area.
Till now, only municipal bodies had gone in for bond issue. Five municipal corporations have raised money through Muni Bond.
The Pune Municipal Corporation had raised Rs 200 crore through 10 -year bonds and this was the first tranche of their Rs 2,264-crore bond issue plans.
A Crisil report had said there was possibility of Rs 6,000-crore municipal bonds to be issued between FY19 to FY21.