Who will finance the mega cities of the future?

Mint explains why the financing of future cities is a pressing need and the options available..

Economic inclusion would include jobs. Indian cities will need capital investment of $840 bn by 2036 in infrastructure and municipal services, says a World Bank report..

Public private partnerships, issuance of municipal bonds and green bonds by urban local bodies (ULBs), land value capture in terms of additional floor space index etc., could be the alternative financing sources..

Other measures include safe and dignified sanitation, state-led investment for urban development and incentivizing cities to increase their creditworthiness for municipal bonds..

The NSE has 28 municipal bonds issued by 10 citiesPune, Hyderabad, Indore, Amravati, Bhopal, Visakhapatnam, Ahmedabad, Surat, Ghaziabad and Lucknow..