Three months after the Indian government announced a ₹100 crore incentive for municipal bond issuances exceeding ₹1,000 crore in the FY27 budget, urban local bodies are still waiting for clear guidelines on the utilization of the proceeds. Four municipalities, including the Ahmedabad Municipal Corporation, are in discussions to issue bonds, with Ahmedabad planning to raise up to ₹1,000 crore within three months. The Brihanmumbai Municipal Corporation, the largest municipality in India, is preparing for a ₹10,000 crore bond issue, its first of this scale. However, the absence of formal regulations on how the funds can be used has raised concerns among investors regarding the productivity and repayment capabilities of these bonds. Previous schemes, like the Amrut initiative, had defined frameworks for fund usage, which facilitated bond issuances. In contrast, the current incentive lacks such clarity, potentially impacting investor confidence and delaying vital infrastructure projects.