New Delhi | The Ministry of Housing and Urban Affairs (MoHUA) convened a high-level stakeholder consultation titled “Municipal Bonds Unpacked – A Dialogue with the Intermediaries” to accelerate reforms in India’s municipal bond ecosystem and strengthen alternative financing avenues for Urban Local Bodies (ULBs).
The dialogue brought together senior government officials, market regulators, credit rating agencies, transaction advisers and subject experts to deliberate on scaling municipal bond issuances and enhancing cities’ access to capital markets in a structured and sustainable manner.
Secretary, MoHUA, Shri Srinivas Katikithala articulated the Government of India’s vision of empowering cities through innovative financial instruments. He emphasised that municipal bonds are a strategic mechanism to fund urban infrastructure, enhance service delivery and promote long-term fiscal sustainability.
Additional Secretary Ms. D. Thara reviewed India’s municipal bond journey so far, highlighting the need for stronger institutional capacity, improved financial management practices and continued reforms to enable more ULBs to tap into debt markets effectively.
Regulatory and Market Perspectives
The consultation also featured insights from regulatory and financial market experts:
- Shri Pramod Rao, Former Executive Director, SEBI, discussed regulatory frameworks required to create a conducive environment for municipal bond issuances.
- Shri Suprio Banerjee, Vice President & Co-Group Head, ICRA, underscored the importance of creditworthiness, fiscal discipline, transparency and timely financial reporting in strengthening investor confidence.
- Shri Umesh Khandelwal, Chief Business Officer, TIPSON Group, elaborated on structuring transaction advisory mechanisms and the role of intermediaries in successful bond issuance.
- Shri Sashi Krishnan, Director, NISM, contextualised the development of a vibrant municipal debt market in India.
The session was moderated by Dr. Dhiraj Jain, Professor, NISM.
Strengthening Urban Financial Autonomy
Deliberations underscored municipal bonds as a critical instrument for mobilising resources for urban infrastructure, enhancing financial autonomy of cities and supporting sustainable and resilient urbanisation. Participants also discussed standardisation of processes, improving credit ratings of ULBs, expanding investor confidence and scaling issuances across more cities.
MoHUA reiterated its commitment to working closely with stakeholders to create a robust municipal finance ecosystem and enable cities to access capital markets more effectively to meet India’s rapidly growing urban infrastructure demands.
Also Read: NHAI to Develop India’s First ‘Bee Corridors’ Along National Highways