The Lucknow Municipal Corporation (LMC) is seeing the success of its first municipal bond, issued in November 2020, with the Ahana Enclave apartment project emerging as a profitable venture. Initially, concerns were raised over the repayment of the Rs 200 crore bond. However, as the Ahana Enclave, comprising 648 flats on Bijnor Road, progressed, these worries eased. Currently, only 170 flats remain under construction, with finishing touches underway.

The project is expected to yield a profit of Rs 70 crore for the LMC, alongside a Rs 26 crore rebate on the municipal bond. Originally planned for 684 flats, the project was later scaled down to 648 units. The success of Ahana Enclave has prompted the Principal Secretary for Urban Development to encourage Lucknow and other municipal corporations to prepare similar schemes and issue municipal bonds, aiming to make civic bodies more self-reliant.

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The LMC’s initiative follows trends in other cities: Ghaziabad issued bonds worth Rs 150 crore, while Agra, Prayagraj, and Varanasi each issued bonds of Rs 50 crore. On December 2, 2020, Chief Minister Yogi Adityanath participated in the bell ceremony at the National Stock Exchange in Mumbai. The bond was subsequently listed on the Bombay Stock Exchange, marking North India’s first municipal bond.

Mahamilind Lal, Finance Controller of the LMC, said municipal bonds are helping civic bodies achieve financial self-reliance. The success of Ahana Enclave has also transformed the mindset of the LMC, which previously relied solely on government grants. The corporation focused on quality construction to ensure repayment with interest, enhancing its reputation nationally and internationally.

The Union Budget 2026 further strengthens the municipal bond framework, raising the bond limit from Rs 200 crore to Rs 1,000 crore and offering a Rs 100 crore rebate. These measures will enable the LMC to introduce new profitable schemes without budgetary constraints.

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In addition to infrastructure projects, the budget also aims to improve livelihoods. The PM SVANidhi Scheme, supporting 123,000 street vendors after the COVID-19 pandemic, has been extended. Under the revised scheme, loans of Rs 15,000, up from Rs 10,000, will be available, ensuring ample funds for small businesses to grow.