With Varanasi listing, U.P. on track to become leader in municipal bonds
The funds raised are being utilised for vital urban projects such as roads, water supply systems, sewerage networks, and street lighting. These investments are not only enhancing quality of life but also spurring economic growth and attracting further investments, according to a government statement.
Uttar Pradesh is on track to become the first state in India with five municipal corporations listed on the stock exchange, as Varanasi prepares to launch its municipal bond. This move will place UP ahead of Maharashtra and Gujarat in municipal bond activity, according to an official statement by the government.
The Yogi Adityanath-led government has championed the use of municipal bonds to boost urban infrastructure and reduce reliance on state funding. The journey began in November 2020 when the Lucknow Municipal Corporation raised ₹200 crore, reviving municipal bonds after a 23-year hiatus. Since then, Ghaziabad, Agra, and Prayagraj have followed, with Prayagraj’s bond being oversubscribed by 4.4 times—an indication of strong investor confidence, the statement said.
The funds raised are being utilised for vital urban projects such as roads, water supply systems, sewerage networks, and street lighting. These investments are not only enhancing quality of life but also spurring economic growth and attracting further investments, according to the statement.
Varanasi’s upcoming bond issuance will take UP’s total to five out of the 19 municipal bonds currently listed nationwide. Experts see this as a sustainable model for infrastructure funding, especially in tourism-driven cities like Prayagraj and Varanasi.
According to officials, chief minister Yogi Adityanath’s policies have enabled municipal bodies to access capital markets, promote transparency, and move towards self-reliant urban governance.
With this development, Uttar Pradesh is emerging as a national leader in innovative urban financing, they added.
