Category Archives: urban development

How Modi government plans to boost municipal bond issuance

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**How the Modi Government Plans to Boost Municipal Bond Issuance**
*By Dwaipayan Roy | Sep 21, 2025, 06:47 PM*

The Indian government is considering increasing the interest subvention cap beyond the existing limit of ₹26 crore per Urban Local Body (ULB) to promote the issuance of municipal bonds for urban infrastructure development. This initiative is part of the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) scheme.

### Slow Progress Despite Key Initiatives

Despite flagship programs like AMRUT and the Smart Cities Mission, progress in mobilizing funds through municipal bonds—often called ‘muni bonds’—has been slower than expected. To address this, the government aims to enhance incentives and institutional support to encourage more ULBs to access the capital markets.

### Understanding the Interest Subvention

The interest subvention is a financial incentive provided under AMRUT to make municipal bonds more attractive to issuers and investors. Currently, the maximum interest subvention available to a ULB from the Ministry of Housing and Urban Affairs (MoHUA) is capped at ₹26 crore.

To stimulate market participation, the central government offers a 2% interest subvention on bond issuances by ULBs.

### Incentive Structure for Bond Issuance

– **First Bond Issuance:**
ULBs can receive incentives up to ₹13 crore for every ₹100 crore raised, with an overall cap of ₹26 crore under AMRUT 2.0.

– **Subsequent Issuances:**
Bonds issued must be classified as green bonds, focusing on sectors such as water, sanitation, renewable energy, or urban resilience.
In such cases, ULBs are eligible for incentives of ₹10 crore per ₹100 crore raised, subject to a cap of ₹20 crore.

### Institutional Support from NaBFID

The National Bank for Financing Infrastructure and Development (NaBFID) is set to play a crucial role in supporting ULBs throughout the bond issuance process. The bank may empanel agencies including merchant bankers, brokers, and rating agencies to provide expert guidance.

As a development finance institution, NaBFID will assist municipal bodies with statutory paperwork and ensure compliance with the Securities and Exchange Board of India (SEBI) listing requirements — simplifying access to capital markets for infrastructure projects.

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By expanding financial incentives and offering institutional support, the Modi government seeks to unlock the potential of municipal bonds as a vital tool for urban infrastructure development, enabling cities to better meet the growing needs of their populations.
https://www.newsbytesapp.com/news/business/municipal-bonds-goi-considers-raising-interest-subvention-cap-for-ulbs/story

Mumbai Weather Update: City To See Light To Moderate Rains Today; Konkan Remains Under Yellow Alert

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Mumbai: After days of intense downpours that caused waterlogging and traffic snarls across the city, Thursday began on a comparatively calmer note with light to moderate showers. The India Meteorological Department (IMD) has not issued any heavy rainfall alert for Mumbai today, predicting that rainfall activity will be subdued through the day, though occasional spells may continue.

Weather Forecast For Mumbai Today

According to the IMD forecast, the city will experience mostly cloudy skies with intermittent light to moderate rain. While some localised pockets may see slightly heavier showers, widespread intense rainfall is unlikely. Daytime temperatures are expected to hover around 28°C, while the minimum temperature may settle close to 25°C.

Winds will remain mild, providing some relief to residents after a week marked by flooding and disrupted commutes.

Neighbouring urban areas such as Thane and Navi Mumbai are also expected to follow a similar pattern. Cloudy skies with occasional drizzle and spells of moderate rainfall have been predicted, with temperatures remaining consistent with Mumbai’s forecast. Maximum daytime readings will stay near 28°C, while night temperatures will range between 24°C and 25°C.

Winds in these areas are also forecast to be light to moderate, reducing the likelihood of severe weather-related disruption.

In Palghar district, no formal weather alert has been issued. However, light to moderate showers may occur in parts of the region through the day. The district will see overcast skies, with maximum temperatures forecast around 28°C and minimum temperatures near 25°C, mirroring weather conditions in Mumbai and its immediate neighbours.

Konkan Under Yellow Alert

The weather outlook is slightly different further south along the Konkan coastline. The districts of Raigad, Ratnagiri, and Sindhudurg remain under a yellow alert issued by the IMD.

Authorities have cautioned residents in these areas to expect heavy showers in isolated locations, potentially accompanied by gusty winds, particularly in coastal stretches. These conditions could lead to temporary waterlogging and impact road connectivity.

Skies will remain predominantly cloudy, with maximum temperatures reaching up to 29°C and minimum temperatures holding steady near 25°C.

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https://www.freepressjournal.in/mumbai/mumbai-weather-update-city-to-see-light-to-moderate-rains-today-konkan-remains-under-yellow-alert