The Ministry of Urban Development (MoUD) has allowed as many as 26 municipal corporations to issue bonds to raise funds for developing urban infrastructure under initiatives such as the Smart Cities Mission and the Atal Mission for Rejuvenation and Urban Transformation. The municipal corporations granted consent include those in New Delhi, Navi Mumbai, Pune, Kolkata, Nashik, Ahmedabad, Hyderabad, Jaipur, Bhopal and Lucknow. The ministry expects municipal bonds worth Rs 75 billion to be issued in the current fiscal year. The MoUD will offer the corporations a 2 per cent interest subsidy, as the Ministry of Finance turned down its request to make gains from the municipal bonds tax-free for investors. The MoUD has earmarked Rs 4 billion for this purpose, of which at least Rs 600 million is likely to be provided in the current fiscal year.