Mumbai, June 19 -- India's municipal corporations continue to prefer private debt placements over public issuances to fund development projects due to ease and speed of execution, lower compliance burden, and greater control over investor selection.

Urban civic bodies raised Rs.1,625 crore through private placements from 2020 to 2025 (till 13 June), while mobilising Rs.244 crore via public issuances during the period, according to data from Prime database. Indore Municipal Corporation was the only one to issue public debt in 2023. Municipal bonds are used to financeurban development projects.

"Public issues demand broader disclosures and investor mobilization," said Vishal Goenka, co-founder of IndiaBonds. Private placements, said Goenk...