AP Approves ₹1,010-Crore Pooled Municipal Bond Framework

The framework aims to mobilise more than ₹1,010 crore for civic infrastructure projects worth ₹1,122.86 crore across participating municipalities. Officials said this initiative would reduce dependence on government grants, while strengthening municipal governance, financial discipline, transparency, and creditworthiness.

The proposal is part of the state's Swarna Andhra@2047 vision to develop sustainable and citizen-centric urban centres. The government said access to institutional capital would help accelerate infrastructure development without placing the entire financial burden on the state exchequer.

Importantly, the pooled financing model will enable smaller municipalities to access capital markets collectively.

Officials said the initiative aligns with the Union Budget 2026–27, which provides incentives for high-value municipal bond issuances exceeding ₹1,000 crore.

To oversee implementation of the Pooled Municipal Bond Issuance Framework, the government has constituted a high-level screening committee headed by principal secretary, Municipal Administration and Urban Development (MA&UD). The committee includes senior officials from the Finance department and MA&UD. Andhra Pradesh Public Financial Corporation will supervise bid evaluation, selection of merchant bankers, and implementation of the framework. APUIAML will provide technical and secretarial support.

Municipal administration minister Ponguru Narayana said the framework would enable municipalities to mobilise long-term resources for improving drinking water supply, sewerage, roads, stormwater drainage, solid waste management, street lighting, and other civic infrastructure.

Principal secretary (MA&UD) S. Suresh Kumar said the initiative would strengthen municipal finances, improve governance standards, and create an investor-ready ecosystem.