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Civic bodies and PSUs of Centre and states should follow Lucknow for issuing long term bonds with lucrative interest-rates for generating funds for public-welfare schemes

Kashmir Times. Dated: 8/20/2021 12:31:52 AM

Dear Editor,

Lucknow Municipal Bonds of total issue-value of rupees 200 crores under Atal Mission for Rejuvenation and Urban Transformation (AMRUT) scheme were issued in the year 2020 with lucrative interest-rate 8.5 percent of 10-year maturity being oversubscribed by 4.5 times just on opening issue by UP Chief Minister at Bombay Stock Exchange. Over-subscription was evident because no other government-security presently gives such high return. Similar bonds are to be issued by other civic bodies in UP. Civic-bodies of other states states should also follow the same for developing infrastructure rather than depending on public-exchequer of center and states, or hiking tax-dose. Union Ministry of Housing and Urban Development should write to states for issuing such bonds by their civic bodies.



Such long-term bonds with comparatively higher interest-rates than prevailing interest-rates on government-schemes should also be issued by public-sector-undertakings (PSUs) of the center and states for enlarging their scopes which in turn will generate employment in a big way. Investors will be benefitted by a better interest-rate without harming public-exchequers. PSUs should utilize funds generated through such suggested bonds to set up new units scattered throughout the country in inner areas to ease burden on cities by those coming for employment. Aim should be to provide job-opportunity by PSUs by setting up new units away from cities to effectively check migration of people from villages to cities just for livelihood.



SUBHASH CHANDRA AGRAWAL
1775 Kucha Lattushah

Dariba, Chandni Chowk

DELHI 110006 (India)