Welcome launch of Lucknow Municipal Bond should be adopted by other cities and public-sector-undertakings of the center and the states
It refers to Lucknow Municipal Bonds of total issue-value of rupees 200 crores under Atal Mission for Rejuvenation and Urban Transformation (AMRUT) scheme with lucrative interest-rate 8.5 percent of 10-year maturity being oversubscribed by 4.5 times just on opening issue by UP Chief Minister at Bombay Stock Exchange. Over-subscription was evident because no other government-security presently gives such high return. Even though similar bonds are to be issued by civic bodies of other cities in UP, other states should also follow the same for developing infrastructure rather than depending on public-exchequer of center and states, or hiking tax-dose. Union Ministry of Housing and Urban Development should write to states for issuing such bonds by their civic bodies.
Such long-term bonds wi...