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Guj CM Shri Bhupendra Patel attends the listing of VMC municipal bond on BSE

Gujarat Municipal Corporations have succeeded in linking Local Urban Bodies with the Global Financial market by obtaining funds from municipal bonds for urban infrastructure facilities: Chief Minister Shri Bhupendra Patel

The listing of the first Municipal Bond of the Municipal Corporation of Vadodara on Bombay Stock Exchange was concluded in the presence of the Chief Minister at Mumbai.

Under the ‘AMRUT’ mission, VMC has succeeded in raising ₹100 crore through municipal bonds

Followed by Ahmedabad and Surat, Vadodara becomes the third Municipal Corporation of the state to receive funds from Municipal Bond


Vadodara Municipal Corporation (VMC) has raised ₹100 crore through Municipal Bonds under Central government’s Atal Mission for Rejuvenation and Urban Transformation (AMRUT) Scheme. The bond was issued on March 26 on Bombay Stock Exchange’s (BSE) BOND platform. VMC received 33 bids for ₹1,007 crore, which was 10 times the issue size.

“Gujarat Municipal Corporation has succeeded in connecting Local Urban Bodies with the Global Financial Market by obtaining funds from Municipal Bonds for infrastructure development works, urban infrastructure facilities, and the well-being of the citizens,” Hon’ble Chief Minister Shri Bhupendra Patel said while addressing a function in Mumbai.

This event was held on the occasion of listing of the first Municipal Bond-2022 of the Vadodara Municipal Corporation of the state at BSE. The Chief Minister inaugurated the day-long operation of BSE by Bell Ringing at the Bombay Stock Exchange.

VMC was subscribed at the lowest rate till date at 7.15%, which was a unique achievement for the corporation. Chief Minister congratulated the entire team of Mahanagar Seva Sadan, VMC Mayor Shri Keyur Rokadia, and its Commissioner Smt Shalini Agarwal for listing this first municipal bond on BSE.

The funds raised through bonds will be used for Sindhrot Water Supply project to meet the drinking water needs of the people of Vadodara, and for Amitnagar APS project, which will help in the efficient disposal of sewage water.

Shri Bhupendra Patel added that, “Prime Minister Shri Narendra Modi has inspired prudent financial management by setting up municipal bonds in collaboration with the country’s Urban Local Bodies, Urban Development Department and SEBI. With the help of such funds, the growth of urban infrastructure has been linked to public participation, development and trust of all.”

The Chief Minister said that, Vadodara is the third corporation in Gujarat after Ahmedabad and Surat which has given a new direction to urban welfare works with such bonds.

He said that urbanisation is now not a challenge, but has become an opportunity. The cities are becoming lovable and livable with the world class infrastructure. The definition of urban well-being has expanded from facilities of light, water, sewerage to Ease of Living.

“Public participation received through this bond in addition to the support from the central government for the ‘AMRUT’ mission will develop the Vadodara city brilliantly. Such bonds will bring self-sufficiency in financial management of corporations,” the Chief Minister added.

Such bonds will be vital in making Gujarat Aatmanirbhar in the field of urban development and urban infrastructure development. Through self-reliant cities of the state, the vision of ‘Aatmanirbhar Gujarat to Aatmanirbhar Bharat’ will be realised.

On this occasion, Shri Keyur Rokadia, Mayor of Vadodara, said,  “Vadodara Municipal Corporation has listed its first bonds. Fund of ₹100 crore has been raised through these bonds at a very low rate, which will be utilized for various development projects including drinking water project for the citizens of Vadodara.”

Shri Ashish Kumar, MD & CEO, BSE, congratulated Vadodara Municipal Corporation and said that this fund would be a boon for the development of Vadodara. He also added that the urban local body could add to the facilities of the citizens through such funds.

“This approach of the Government of Gujarat towards urban development has become an inspiration to others. The joint efforts of the Government of India and BSE have created a new platform for building infrastructure in the cities of the country,” Shri Kunal Kumar, Director, Smart City Mission and Joint Secretary, Government of India, said during the event.

“This fund will be the driving force of urban development works. After Ahmedabad and Surat, now Vadodara Municipal Corporation has raised funds for the well-being of the citizens and paved the new way of development,” Shri J. P. Gupta, Principal Secretary, Finance Department, Government of Gujarat said.

US Treasurer Bill Block congratulated the Government of Gujarat and VMC for raising funds through bonds. He also requested to raise more such funds and carry out works in the public interest.

On this occasion, Commissioner of Vadodara Municipal Corporation Smt Shalini Agarwal, Deputy Mayor Nandaben Joshi and other dignitaries were present.

Source: Information Department, Gujarat