AnyTime News 
ANYTIME NEWS NETWORK. In a decisive move to strengthen India’s urban financing framework, the Ministry of Housing and Urban Affairs (MoHUA) convened a high-level stakeholder consultation on municipal bonds on February 18, 2026. The dialogue, titled “Municipal Bonds Unpacked – A Dialogue with the Intermediaries,” marked a strategic step toward deepening the municipal bond market and empowering Urban Local Bodies (ULBs) with diversified funding avenues.
As India’s cities expand at an unprecedented pace, the demand for sustainable urban infrastructure—from water supply and sanitation to mobility and smart services—continues to surge. Recognizing this urgency, MoHUA brought together senior government officials, market regulators, credit rating agencies, merchant bankers, transaction advisors, and subject experts to deliberate on strengthening the ecosystem for municipal bond issuance.
The central objective of the consultation was clear: enable cities to access capital markets in a structured, transparent, and sustainable manner. By fostering collaboration between policymakers and market intermediaries, the ministry aims to remove bottlenecks and create a conducive environment for scaling up municipal bond issuances across the country.
MoHUA Secretary Shri Srinivas Katikithala underscored the Government of India’s vision of financially empowered cities driven by innovative financing mechanisms. He emphasized that municipal bonds are not merely financial instruments but catalysts for urban transformation. According to him, a robust municipal bond market can significantly accelerate infrastructure creation while improving service delivery standards for citizens.
Additional Secretary Ms. D. Thara shared insights from the experiences of ULBs that have already tapped the bond market. While acknowledging the progress made in recent years, she stressed the need for sustained capacity building, stronger financial governance, and improved institutional frameworks. She highlighted that enhancing financial discipline and professionalizing municipal management would be critical to expanding market participation among cities.
Experts Stress Transparency and Credit Discipline
Investor Confidence Key to Market Expansion
The consultation featured significant perspectives from regulatory and market stakeholders. Former SEBI Executive Director Shri Pramod Rao outlined regulatory considerations necessary to foster a favorable environment for municipal bond issuances. He noted that procedural clarity, streamlined approvals, and investor safeguards would encourage broader participation from both issuers and investors.
ICRA Vice President and Co-Group Head Shri Suprio Banerjee emphasized the importance of credit ratings and fiscal responsibility. He pointed out that ULBs must maintain transparency, timely and accurate financial reporting, and strong revenue streams to gain investor confidence. According to him, creditworthiness remains the cornerstone of a vibrant municipal debt market.
Shri Umesh Khandelwal, Chief Business Officer of TIPSON Group, presented a transaction advisor’s perspective, focusing on the structured roles of intermediaries, merchant bankers, and advisory institutions in ensuring smooth bond issuance. He stressed the need for standardized processes and professional execution to enhance efficiency and credibility.
Shri Shashi Krishnan, Director at NISM, provided a broader outlook on developing a dynamic municipal debt market in India, highlighting the importance of long-term reforms, policy consistency, and investor education. The session was moderated by Dr. Dheeraj Jain, Professor at NISM.
Throughout the dialogue, stakeholders reiterated that municipal bonds can play a transformative role in mobilizing resources for urban infrastructure, strengthening financial autonomy of cities, and supporting India’s vision of sustainable and resilient urbanization. Discussions also focused on building investor trust, standardizing procedures, improving municipal credit profiles, and expanding bond issuance across more cities.
MoHUA reaffirmed its commitment to working closely with all stakeholders to develop a strong municipal finance ecosystem and increase city participation in capital markets. The consultation forms part of the ministry’s ongoing efforts to explore innovative financing mechanisms and equip ULBs to meet the infrastructure demands of India’s rapidly urbanizing landscape.
