Publication

This paper evaluates the innovative urban financing techniques adopted in Tamil Nadu, to examine whether and to what extent, they have facilitated municipal debt market development. The author argues that unless local governments develop demand side capabilities in project preparation and development, financial innovations would fall short of building durable municipal bond markets. The seeds sowed for market creation can grow only if both demand and supply side factors are developed in tandem, such that the debt funds mobilized are deployed promptly in productive projects.