The Mumbai Metropolitan Region Development Authority (MMRDA) has been permitted to issue bonds for up to Rs 50,000 crore, a first. The approval was granted following a Friday authority meeting.
The MMRDA will use bonds to obtain money. Dr. Sanjay Mukherjee is the metropolitan commissioner in charge of this initiative. The MMRDA formerly only used loans and land monetization.
According to a senior official, the first sum raised will depend on immediate needs. It may begin at Rs 10,000 crore and be increased progressively to fulfill the maximum requirement.
The MMRDA is now working on a number of massive infrastructure projects that will cost several lakh crores. It has borrowed money from different financial institutions and mostly relied on land monetisation to pay for them.
The official pointed out that selling land at a loss would be less necessary if bonds were issued to raise the necessary funds.
The official further emphasised how bonds are a desirable means of obtaining capital for MMRDA because of their excellent credit rating and priceless assets in desirable areas like the Bandra Kurla Complex.
Now that it has approval, MMRDA will work with an underwriter to assess market reaction and proceed with the listing in accordance with that response.
Leading the planning organisation in the Mumbai Metropolitan Region, the MMRDA is now managing projects valued at more than Rs 3 lakh crore, including the roughly Rs 70,000 crore Metro project.
The authority has had a difficult time finding the money for these big projects. Nonetheless, it has accomplished financial closure for 37 projects in the area and successfully obtained a total of Rs 1,03,622 crore from reputable funding organisations, signifying a critical turning point in its financial strategy.
