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THEME PAPER

capital lying idle in the world taxes to be escrowed will be h ps://doi.org/10.1002/pa.2554
market, arranging for the debt identified in the initial phase
McKinsey Global Institute.
should not be a challenging task. before starting the project and
(2010). India's Urban Awakening:
Almost 50 percent of streamlined to a fixed repayment
Building Inclusive Cities,
government bonds of the OECD account by the authority. The
Sustaining Economic Growth.
are in negative interest rates. The VIF mechanism can be used McKinsey and Company.
authorities need to look for long- along with different value
term borrowing options (30-40 capture methods and the choice McKinsey Global Institute.
years) at cheaper interest rates. of taxation to be used based on (2011). Urban World: Mapping
the Economic Power of Cities.
The state governments should the geographical, political, and
McKinsey and Company.
strengthen the ULBs and other conditions. VIF can also be
encourage them to roll out the used alongside BOT, PPP, etc Ministry of Urban Development.
municipal bonds that have died depending on the project (2017). Government of India.
a slow death over the last few requirements. Overall, this Value Capture Finance Policy
years. A revival of municipal method is well suited for Framework.
bonds or infrastructure bonds financing the infrastructure
Mohanty, P.K. (2016). Financing
will be a big boost to the future projects in urban areas along
Cities in India: Municipal
infrastructure projects. ULBs with the peripheries. The
Reforms, Fiscal Accountability
should be encouraged and made implementation of VIF for rural
and Urban Infrastructure. New
to compete for ge ing central infrastructure development still
Delhi: Sage Publications
grants as seed money to initiate needs to be studied.
infrastructure development P l a n n i n g C o m m i s s i o n ,
projects. Government of India. (2008).
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