Surat Municipal Corporation to issue bonds for water supply scheme

The Surat Municipal Corporation (SMC) in Gujarat plans to raise funds to the tune of Rs 2 billion through bonds for the 24×7 water supply scheme. SMC plans to issue bonds within the next five to six months. The scheme is estimated to involve an investment of Rs 5 billion, of which Rs 2 billion will be raised through bonds. The remaining funds will be provided by the state government. The bonds will be issued under the Municipal Bond Scheme, for which the central government provides an interest subsidy of 13 per cent. SMC will have to bear a 2 per cent interest rate. It has appointed SBI Capital Markets as a consultant for the bond issue.