PUNE: The Pune Municipal Corporation has to ensure its accounts are prepared on time, their audit is carried out by an independent agency, financial and operational data is made public and it complies with all eligibility requirements put forth by Sebi and the state government to successfully raise money through bonds.
According to experts, the PMC has to comply with disclosure standards adopted by the private sector to boost investor confidence and bond subscriptions. "Going by the PMC's history, these conditions would prove a major challenge for the civic body. It is not clear what will PMC do with bonds and how it will respond to the market. Is the civic body capable of this venture?" asked senior Congress leader Arvind Shinde, who opposed the PMC's move in the recent general body meeting.
Opposition leaders claimed the civic administration's insistence on bonds was "suspicious" as there were no efforts to look for other revenue resources. The leader of Opposition in the PMC, Chetan Tupe, insisted the civic administration's hurry to go for bonds was not understandable. "The administration is acting like bonds is the only option left before the PMC to complete the water project," he said.
The civic administration, on the other hand, stressed it was going according to the state and the central government's directives. The civic body officials stated the PMC would have to go for bonds because only a part of the capital requirement could be met through the funds from the central and state governments.