[fdaforum]

• Municipal Bonds issued by the ULBs, are redeemable after a specific period and have a definite rate of interest.
  
• Municipal bonds are appropriate instruments - raising resources, channeling funds from the capital market into infrastructure development.
  
• Long term in nature, unlike bank loans that are of shorter tenure.
  
• Provides opportunities for long gestation infrastructure development projects. 
  
• About 11 ULBs out of 65 continued their reliance on institutional and bank borrowings to finance urban infrastructure projects from commercial banks.
  
• Agra , Allahabad, Lucknow , Varanasi, Kanpur, Meerut are using JnNURM revolving fund to fund the capex for their projects.
  

Municipal bond issues in india