4 min readMumbaiMay 26, 2026 10:16 PM IST With its liability crossing Rs 2.13 lakh crore owing to the slew of infrastructure projects it has taken up, the Brihanmumbai Municipal Corporation (BMC) has floated a proposal to appoint a merchant bank for issuing municipal bonds. The appointed bank will design the bond structure, fix interest rates and repayment schedule. The move comes nearly a month after the civic body floated a tender to appoint a Securities and Exchange Board of India (SEBI)-registered agency for analysing BMC’s credit rating, an important step towards initiating the process of future borrowing through markets. Municipal bonds are debt securities issued by municipal corporations to raise capital for funding key public infrastructure projects. At present the BMC has taken up infrastructure projects having a total capital size of Rs 2.13 lakh crore — nearly double than BMC’s current reserve corpus, which stands at Rs 81,774 crore. Apart from this, 51 percent of the total reserves, held as Fixed Deposits, are earmarked for internal commitments. These include funds set aside for …