Uttar Pradesh chief minister Yogi Adityanath will visit Mumbai to attend the listing of Lucknow Municipal Corporation (LMC)’s bonds at the Bombay Stock Exchange (BSE) on Wednesday.
The Lucknow Municipal Corporation raised `200 crore by issuing municipal bonds on private placement basis using BSE Bond platform a fortnight back, thereby becoming the first civic body in north India to issue bonds under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) scheme. The municipal bonds which carry 8.5% interest per annum and have tenure of 10 years, received 21 bids and were oversubscribed 2.25 times.
The proceeds of the issue, which has been rated ‘AA’ by India Ratings and ‘AA (CE)’ by Brickwork Ratings, are proposed to be invested in a water supply project being implemented under AMRUT scheme and a housing project.
“The significance of this maiden bond issue from an urban local body in Uttar Pradesh is not merely the quantum of resources raised for investments in urban infrastructure but a demonstration of the transformation of Lucknow Municipal Corporation into a model for urban governance and financial management in Uttar Pradesh. It is a manifestation of the ease of doing business at the local level, where there is direct interface with the common people,” said Keshav Verma, advisor to the UP government, adding that municipal corporations of Ghaziabad, Varanasi, Agra and Kanpur will also issue municipal bonds in the coming months.
According to senior officials, the considerable investor interest evinced by the over-subscription of the bond issue, especially in the times of Covid, is indicative of improving economic environment in the state.
The chief minister would also be meeting representatives from the corporate, banking and film industries and would be inviting them to invest in the state, especially in its upcoming hi-tech film and infotainment city in Greater Noida and the defence corridor. Under the new film policy, the state government is providing financial assistance of up to Rs two crore to films shot in the state.
Stating that Uttar Pradesh is becoming the most preferred choice of investment for foreign companies, a senior official of the chief minister’s office said that of the Rs 4.52 lakh crore worth MoUs signed at the Investor’s Summit in 2018, investments of about Rs 2 Lakh crore have come on the ground.
“During the Corona period, 57 national and international companies have tied up with the State government for an investment of Rs 46,501 crore. While 29 domestic companies have tied up to invest Rs 37,144 crore, 28 international companies have expressed intent to make an investment of Rs 9,357 crores in the state. These include the German shoe-making company Von Wellix in Agra, which has shifted from China, Maq Software from the US, Ekagrata Inc from Canada, Edison Motors from South Korea, Yazaki Japan. Domestic industry leader Hiranandani Group has started construction of a 20-acre data center in Noida, the largest data center in North India, with an investment of Rs 6,000 crore. The 20-acre data center will provide direct and indirect employment to 20,000 youth,” the official said, adding that the state government has been working relentlessly on improving the business climate in the state.
“The State has implemented a record number of reforms — 186 — spread across multiple departments, in order to facilitate investment and the result can be seen in the state quantum jump in the Ease of Doing Business ranking in the recently announced Business Reform Action Plan ranking of states by Department for Promotion of Industry and Internal Trade (DPIIT). Uttar Pradesh bagged the 2nd position – a jump of 10 positions from last year,” he stated.