GHMC to raise funds via bank term loans

The Greater Hyderabad Municipal Corporation (GHMC) is looking at ways to mop up funds to help it take up repair and development works in the city.

The civic body’s move to issue municipal bonds was a huge success, but with funds raised thus having restrictions on utilization, the GHMC is now preparing to raise money through bank term loans for expediting different ongoing development works and to complete land acquisition works here.

The municipal corporation had raised Rs.495 crore through municipal bonds in three tranches for taking up the



Strategic Road Development Programme (SRDP). However, these funds are to be utilized for specified projects and works, while term loans offer the flexibility of utilizing the funds for different projects. With the bank lending rates being reduced considerably in the market as well, the municipal corporation believes term loans are the right option.

In 2017, the State government had accorded permission to the municipal corporation to raise Rs.1,000 crore through issue of municipal bonds and Rs.2,500 crore through term loans.