First time in MP: Bonds to fund temple development in state

Meenakshi.Sharma@timesofindia.com

Indore: In a first-of-its-kind initiative in Madhya Pradesh, the state govt is preparing to launch temple bonds to raise funds for development, conservation and management of major religious destinations in Ujjain and Malwa region ahead of Simhastha, creating a new model that combines public investment with faith-based infrastructure development.

The proposed bond issue, estimated at Rs 200 crore, is expected to be launched by the end of July after completion of regulatory and procedural formalities. The initiative forms part of a larger Rs 1,100-crore temple development programme covering 11 prominent religious destinations.

The religious sites include Kal Bhairav Temple, Mangalnath Temple, Sandipani Ashram, Navgrah Temple, the 84 Mahadev temples, Angareshwar Mahadev Temple, Bhukhi Mata Temple, Gadkalika Temple, Siddhavat Temple, Baglamukhi Mata Temple and selected shrines in Agar-Malwa district.

“Ensuring better facilities for millions of devotees visiting Ujjain’s major temples is a priority for state govt. We have identified 11 temples for a comprehensive development programme with an estimated outlay of Rs 1,100 crore. The proposed temple bond issue will help create a sustainable funding mechanism and reduce dependence on direct govt funding,” Ujjain divisional commissioner Asheesh Singh said.

Under the Rs 1,100-crore temple development programme, Rs 200 crore will be raised through temple bonds, Rs 275 crore through Urban Challenge Fund and Rs 625 crore through bank financing.

The state govt is mulling over initiating the approval process with finance and law departments and seek necessary regulatory clearances before launching the issue.

Officials said that the funds raised through the programme will be used for restoration and conservation works, beautification projects, parking facilities, drinking water systems, pilgrim facilitation centres, road connectivity, lighting, security infrastructure and disaster-management measures. Detailed project reports are being prepared for each temple.

The temple bond proposal comes after Indore Municipal Corporation’s successful green bond issue in 2023. The civic body had raised Rs 244 crore through public green bonds to fund a 60 MW solar power project, one of the first such municipal financing initiatives in the country and a benchmark for innovative infrastructure funding.

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10-year maturity period likely

Temple bonds will function much like infrastructure bonds, allowing individuals, trusts, institutions and other investors to participate in development of religious assets while earning a fixed return over a specified tenure. The proposed bonds are likely to have a 10-year maturity period, though the final interest rate, minimum investment amount and other terms are yet to be announced.