The Rajkot Municipal Corporation (RMC) has achieved a significant milestone in urban infrastructure development by successfully raising Rs  100 crore through a municipal bond issue. The bond was oversubscribed by 4.95 times, reflecting strong investor confidence. This accomplishment underscores RMC's commitment to fiscal discipline, transparency, and innovation in urban governance.

The Rs. 100 crore bond has a five-year tenure and offers an interest rate of 7.90 percent. It has been rated AA by CRISIL and was available on the National Stock Exchange's Electronic Bidding Platform. Additionally, the Government of India is providing a Rs. 13 crore interest subsidy for cities that issue municipal bonds, which will help reduce the average borrowing cost for RMC, making the financing more sustainable.

The successful bond issue follows a series of internal reforms by the RMC aimed at enhancing fiscal responsibility and transparency. Over the years, RMC has worked to improve its credit rating from A- to the current AA, showcasing its robust financial health and well-managed operations. The proceeds from the bond issue will be allocated to developing water supply and sewage infrastructure projects in areas that have recently been integrated into the Rajkot city limits. These projects include a 23 MLD sewage treatment plant, a 14 MLD elevated storage reservoir, and a 500 km network for water distribution and sewage collection. This investment in infrastructure supports the Rajkot Municipal Corporation’s broader mission to provide high-quality urban services to the city’s growing population.