The BJP-led Uttar Pradesh Government has decided to form individual municipal corporations for Noida, Greater Noida and Yamuna Expressway. All these areas don’t have civic bodies and thus the formation of municipal corporations will carry out all the infrastructure development along with the regular civic activities.
All these civic bodies are planned according to the model of New Delhi Municipal Corporation (NDMC) to deal with the industrial areas and to look after the civic issues in all the three localities.
The Industrial Development Act, 1976 allow every city to have its own municipal corporation. The State Government has drafted a letter to the CEOs of concerned authorities and asked them to come up with a report on the issues arose due to the absence of these civic bodies. This step is taken to speed up the formulation process of municipal corporations in Noida, Greater Noida and Yamuna Expressway.
The officials have observed that the authorities of these three cities have to carry out the task of the municipal corporations along with managing infrastructural work, land allotment and promotion of industry.
Earlier to this, the Uttar Pradesh Government sanctioned the proposal to float municipal bonds to raise funds for both the Lucknow and Ghaziabad civic bodies.
This decision was taken recently in the meeting of state cabinet that was presided over by state Chief Minister Yogi Adityanath. The State Government will try to raise Rs. 200 crores for the Lucknow Municipal Corporation and Rs. 150 crores for the Ghaziabad Municipal Corporation by this move from the market.
The Lucknow Municipal Corporation will use this fund to improve the drinking water supply and the sewage system.
Manoj Kumar Singh, Principal Secretary (Urban Development) said that this is for the first time that municipal bonds were being floated in the state.
Similarly, the Ghaziabad Municipal Corporation will make use of this fund for the tertiary treatment of water for industrial usage. Singh also said this was a market-oriented experiment and an attempt to make the working of the municipal corporations more professional. The municipal bonds will have a duration of 10 years and the rate of interest on these will be from 8.5% to 9%.
Singh further said that a team will be formed to track the implementation of projects launched with the money raised via the municipal bonds, and also informed that the permission from the Securities and Exchange Board of India (SEBI) had been obtained in regard with the same.
A presentation was also given to the Bombay Stock Exchange in this regard. The principal secretary then said that there would be no government guarantee for the bonds and the probability of institutional investors turning up for it was more.