GZB Nagar Nigam should issue Municipal Bonds forthwith- Col Tyagi
In the 5th National Conference of RWAs at Mumbai, Convenor of the Conference and President of the Flat Owner Federation Ghaziabad Col Tejandra Pal Tyagi raised the issue of Municipal Bonds in his welcome address to the Minister of Urban Development of Govt of India Hon’ble Shri Hardeep Singh Puri Ji. He said that an Advisory be issued by the Central Govt to all Urban Local Bodies to raise debt by way of issuance of Municipal Bonds(Revenue or General).
Infrastructure must grow in proportion to the need and increase of population, present and 10 years ahead. The Urban Population is increasing at a rate of about 30% per annum. A Nagar Nigam can raise about Rs 1500 crore per year as per one estimate. This amount will be over and above the money received by the Nagar Nigam through the center & state govt, taxation, stamp duty and fines. Provision exist to get the Municipal Bonds listed on the Stock Exchange since 2001.Clause vii of section 10(15) of the IT Act makes the Municipal Bond Tax Free.
Most Govt Projects do not succeed because they do not include those for whom the Project was formulated. And hence, it will be in the fitness of things to associate RWAs with raising of Municipal Bonds,” said Col Tyagi”.
The Hon’ble Minister Shri Hardeep Singh Puri readily agreed to the suggestion there and then in front of about 600 Delegates of RWAs truly from all over the Country.
Since the Convenor belongs to Ghaziabad, the Nagar Nigam Ghaziabad should immediately act on issuance of Municipal Bonds the way the Ahemdabad, Bangalore and Chennai Municipalities have done in the past.