Trump visit: Mangaluru among 6 cities that may get US support for municipal bonds


Daijiworld Media Network - Mangaluru (SHP)

Mangaluru, Feb 23: US President Donald Trump's much-hyped visit to India may result in establishing technical cooperation to float in municipal bonds for urban projects. The US treasury department would provide technical know-how to six cities, including five smart cities, where funds from bonds can be used in water supply and sewer projects.

Municipal bonds are loans that investors make to local administrations. The US treasury department is expected to sign memorandums of understanding with six cities that have high credit ratings and have done the necessary groundwork for floating municipal bonds to raise money for major urban renewal projects, stated a report by Economic Times (ET).

Mangaluru is among the six smart cities, the others being Mysuru, Rajkot, Vadodara, Lucknow, and Pimpri Chinchwad. This would be the first time these cities would raise money from the open market through municipal bonds. The bond market is relatively new for cities in India. But, Pune is considered to be a pioneer of this method.

The US treasury department has reportedly supported the city of Pune to begin this process on a pilot basis. Seven other cities have also raised funds worth Rs 3,200 crore for municipal projects. These include Hyderabad, Indore, Amravati, Bhopal and Visakhapatnam. With the help of the programme, technical assistance is being offered to more cities. The ministry of housing and urban affairs gauged credit ratings of all cities and asked cities to give a proposal.

The project was then put before Niti Aayog and department of economic affairs for their approval. After necessary go-ahead, 13 cities were shortlisted and eight cities were found better prepared to float bonds than others. A final list was drawn up with six cities. The increase in the number of cities prepared to float municipal bonds reflects well on financial health.

In the ET report, a senior official was quoted as saying, “Most cities are undertaking government grant-based projects. The cities need to become financially self-sufficient. Municipal bonds provide that option.”

  

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Comment on this article

  • Nagesh, Mangaluru

    Mon, Feb 24 2020

    It is high time our entire coast is given a new statehood and named TULKON state (combo of tulu and konkani). As Bangaluru is already flooded with IT parks and roads are occupied mostly by IT sector busses, is it not wise to shift all new IT projects to Mangaluru which is a coastal city with all amenities. If IT projects pick up in Mangaluru, our city will become another Singapore or Hongkong. We have all infrastructures like highrise buildings, Good Hotels, Malls, food for all categories, hospitality, hospitals, education, banks etc.. What more do you require. When so much is achieved by the locals without any support, imagine the height it would reach with support from Government for IT parks creation, Smart city projects, improvement in already good infrastructure etc.. Mangaluru is already a pride of South and if new projects are encouraged, will become pride of India.

    DisAgree [4] Agree [14] Reply Report Abuse

  • Lambert, Mangalore

    Mon, Feb 24 2020

    I am working under one of the 2 agencies in Mangaluru for Gail Gas India. Visited various Individual residences and Apartments within my regime. Myself conveying advantages of piped gas in Mangalore as one of Smart Cities, But ? arise when, why, how & where project starts. My company has already given details through Media.

    DisAgree Agree [2] Reply Report Abuse

  • El En Tea, Mangalore

    Mon, Feb 24 2020

    Oh like that
    I wish Trump keep on visit Frequently to India.

    DisAgree [2] Agree [5] Reply Report Abuse

  • Albert, Mangalore

    Mon, Feb 24 2020

    Why Potato Pappu's chelas are unhappy?? Mangalore can not be ruined like Amethi !

    DisAgree [15] Agree [16] Reply Report Abuse

  • Sudhishetty, Mangalore

    Mon, Feb 24 2020

    First let we safe our mother Earth do some good work to safe it automatically everything will be fine we don't want Trump r any people if we destroy our earth then Trump also can't bring it back thing it

    DisAgree [1] Agree [9] Reply Report Abuse

  • abdul munim, mangaluru

    Mon, Feb 24 2020

    MCC is the highest corrupt body in whole of Karnataka. The Smart city project that was to be implemented is a utter failure as the administration is not able to beautify the city because of footpath vendors.

    This project, if implemented will just fill the coffers of various officers and corporators as everyone will try to make as much money as possible.

    Udupi is much more cleaner than Mangalore in every sense.

    DisAgree [3] Agree [31] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Mon, Feb 24 2020

    First Complete Smart City ...

    DisAgree [8] Agree [20] Reply Report Abuse

  • moshu, mangaluru

    Mon, Feb 24 2020

    Bharath ka daura toh ek bahana hai, asal me 2.5 bharateeya voters ko lubhana hai.

    The political pandits reckoning that one of the key factors over his visit is being seen by many as a pleasant trip to a country where he is not expected to face tough questions, but to win some easy political points for his domestic politics eying on 2.5 million Indian American voters for November 2020 election

    DisAgree [3] Agree [25] Reply Report Abuse

  • Mangalurian, Mangaluru

    Mon, Feb 24 2020

    The process to raise money from investors using bonds does not sound like a complex process at all.

    India has sold Government-level bonds since many decades.

    BJP has even sold election bonds.

    So, why exactly does India depend on US technology for this? Most likely that same "US technology" was developed by Indian IT workers in India.

    The more India moves ahead, the more it loves to depend on other countries for some very basic things.

    DisAgree [3] Agree [28] Reply Report Abuse

  • Sunil D'Souza, Mangalore

    Mon, Feb 24 2020

    Political leaders may have big plans on how to get a bite of the pie through corruption.

    DisAgree [2] Agree [18] Reply Report Abuse

  • NN, NN

    Mon, Feb 24 2020

    Municipal bonds are bearer instrument and usually income tax free. Good chances of selling them in Mangalore, if the discount (gain) is income tax free. May be a good opportunity for those who want to bleach their money .... I guess.

    DisAgree [2] Agree [4] Reply Report Abuse

  • Clifford, Mangalore

    Mon, Feb 24 2020

    There is no money with government left hence all this talk about bonds. Beware of scams.

    DisAgree [7] Agree [13] Reply Report Abuse

  • Sam, Kudla

    Mon, Feb 24 2020

    Not bonds. Our MLAs need education

    DisAgree [4] Agree [23] Reply Report Abuse

  • G Veer S, Nagpur

    Sun, Feb 23 2020

    If BJP rules for the next 100 years they will be collecting money on 'Smart City' label without the city being made smart city. All,our national assets are being sold one by one and now our cities are being sold to foreigners. Who is becoming Smart and Fat????...Definitely not cows.

    DisAgree [7] Agree [22] Reply Report Abuse

  • Shamsuddin, Dubai

    Sun, Feb 23 2020

    Our netas better learn English quickly then...

    DisAgree [6] Agree [5] Reply Report Abuse

  • JK, Udupi/Dubai

    Sun, Feb 23 2020

    Indian media is giving massive coverage for Trump & his family visit to India....it is festival like mood in India!!!!!

    DisAgree [2] Agree [9] Reply Report Abuse

  • sense_Shetty, Mangalore

    Sun, Feb 23 2020

    That's great news ..Municipalities should operate like corporate bodies ..This will automatically kill lethargy and corruption.Every service provided by the municipality should be well mapped with defined SLA's.

    DisAgree Agree [12] Reply Report Abuse

  • Abdul Rafiq, Uchila / Udupi

    Sun, Feb 23 2020

    Now our Nalin Kumar Pumpwell will taunt Mr. Trump and will say 1 US dollar = 25 Rupees.

    DisAgree [12] Agree [20] Reply Report Abuse


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