The Tiruchi Corporation proposed to build the Integrated Vegetable and Fruits Market complex at Panjapur at an estimate of ₹236.
| Photo Credit: M. MOORTHY
The State government has given its nod to the Tiruchi Corporation to issue municipal bonds totalling ₹100 crore for building its Integrated Vegetable and Fruits Market at Panjapur.
“It is a step in the right direction to tap funds through the capital market. We have so far never tapped financial resources by floating bonds. We have taken all statutory steps to float bonds. The decision will strengthen the Corporation to build commercially viable projects wherever possible,” said V. Saravanan, Commissioner, Tiruchi Corporation.
He told The Hindu that consultations were on with the experts to follow all needed steps to float the bonds. A consultant would be appointed soon to ensure that the Corporation complied with all rules and regulations. As per the move, the Corporation would have to repay the investors from the revenue generated from the project for which the bonds were issued. It had chosen the proposed Integrated Vegetable and Fruits Market at Panjapur to float bonds. The project would be viable and hence the Corporation would repay the loan along with interest, Mr. Saravanan said.
Mr. Saravanan said the market complex was proposed at an estimate of ₹236 crore. Of this, the State government would provide ₹136 crore and the remaining ₹100 crore would be raised by floating bonds. Of ₹100 crore, the Union government would give ₹14 crore as subsidy.
The civic body had so far tapped funds from institutions such as TUFIDCO (Tamil Nadu Urban Finance and Infrastructure Development Corporation Ltd.) and TNUIFSL (Tamil Nadu Urban Infrastructure Financial Services Limited) for infrastructure projects in Tiruchi. “The State government nod to tap the capital market would open up a major avenue to raise funds at an affordable rate. The bonds will be a public issue and the common people can participate and subscribe for the bonds,” said Mr. Saravanan.
He said the rate of interest would be similar to the bonds issued by the governments. It would be around 8%, the official added.
