New Delhi, Aug 13: The South Delhi Municipal Corporation (SDMC) has decided to issue municipal bonds worth Rs 500 crore, in order to fund two important projects, stated officials today. After clearing the proposal, the Standing Committee of the SDMC now waits for an approval from the House. Also Read - In Anjan Bandopadhyay, Bengal Has Lost A Journalist Par Excellence

The SMDC panel’s chairperson Shikha Rai reportedly said, “Once the House gives its approval, it will be sent to the Centre for the final nod. The bonds total worth would be Rs 500 crore and minimum worth of a bond would be Rs 10 with an interest rate of 8.5 per cent. The maturity period would be 10 years.” Also Read - CBSE Class 12 Board Exam 2021 BIG Update: Chances of Exams Getting Cancelled Higher; Here's Why

According to officials, the bonds are proposed to be floated to meet the requirements of the two important projects which includes solar panel-related works and the construction of the proposed headquarters of the SDMC. Also Read - Tamil Actor Nitish Veera Dies of Covid-19 At 45, Celebs Pay Their Condolences

“Since these projects would give a good return on investment, so people would be inclined to buy the bonds. Also, previously only a few civic bodies have adopted such policies like the Brihanmumbai Municipal Corporation (BMC) and the New Delhi Municipal Council,” said a senior official.

The SDMC has been able to pursue adoption of this policy since we have the AA+ ranking from the ICRA limited, an agency for rating urban local bodies in the country approved by the Union government, he said.

(With PTI inputs)