Indore receives Rs 7.2 bn green bonds to develop largest solar plant

16 Feb 2023 CW Team

Green bonds are debt securities that are issued by a governmental or private organisation to finance or refinance environmental projects. The first green municipal bond in India was issued by Ghaziabad Nagar Nigam (GNN), a civic organisation in Uttar Pradesh, for the construction of a tertiary water treatment facility. According to IMC Commissioner, Pratibha Pal, “The solar power project will be funded, but more importantly, this will pave the way for other such (green) projects and explore creative financing strategies to support them.”

When Indore became the first city to sell municipal bonds on the National Stock Exchange's (NSE) debt securities platform in 2018, the civic body hoped expecting a 10 to 15 times oversubscription of its bonds as opposed to the 1.26 times oversubscription that was observed. When there is more demand for new stock than there are shares actually available, the situation is referred to as oversubscription.

The green bond received bids of Rs 6.62 billion on the first day, and it was 5.42 times oversubscribed. “There are several reasons for such an overwhelming response, including the urban local bodies for the first time in India issuing green bonds and the type of project we are opting for. Now, a solar power plant is going to help the corporation reduce its recurring expenditure. But most important is the timing. The opening for the issue was just after the budget, and in it, municipal bonds were given huge importance,” said Pratibha Pal.

The first green bonds issued by the Indore Municipal Corporation (IMC) have raised approximately Rs 7.2 billion. The bonds have been oversubscribed by 5.90 times. The municipal organisation intended to collect roughly Rs 2.44 billion through the issuance of these bonds for the construction and operation of a 60 megawatt solar power plant at the villages of Samraj and Ashukhedi in the Khargone district of Madhya Pradesh. It is anticipated to be the biggest solar facility for Narmada water pumping and providing. Green bonds are debt securities that are issued by a governmental or private organisation to finance or refinance environmental projects. The first green municipal bond in India was issued by Ghaziabad Nagar Nigam (GNN), a civic organisation in Uttar Pradesh, for the construction of a tertiary water treatment facility. According to IMC Commissioner, Pratibha Pal, “The solar power project will be funded, but more importantly, this will pave the way for other such (green) projects and explore creative financing strategies to support them.” When Indore became the first city to sell municipal bonds on the National Stock Exchange's (NSE) debt securities platform in 2018, the civic body hoped expecting a 10 to 15 times oversubscription of its bonds as opposed to the 1.26 times oversubscription that was observed. When there is more demand for new stock than there are shares actually available, the situation is referred to as oversubscription. The green bond received bids of Rs 6.62 billion on the first day, and it was 5.42 times oversubscribed. “There are several reasons for such an overwhelming response, including the urban local bodies for the first time in India issuing green bonds and the type of project we are opting for. Now, a solar power plant is going to help the corporation reduce its recurring expenditure. But most important is the timing. The opening for the issue was just after the budget, and in it, municipal bonds were given huge importance,” said Pratibha Pal.

Infrastructure Urban

26 Jul 2025

India to Invest Rs 600 Billion to Upgrade 1,000 ITIs

As part of its drive to modernise vocational training, the Ministry of Skill Development and Entrepreneurship (MSDE), in collaboration with Gujarat’s Labour and Employment Department, held a State-Level Workshop at the NAMTECH Campus within IIT-Gandhinagar to discuss the National Scheme for ITI Upgradation.The consultation brought together key stakeholders from industry and the training ecosystem to align expectations and support implementation of the scheme, which aims to transform 1,000 Industrial Training Institutes (ITIs) across India using a hub-and-spoke model. The total outlay stands ..

Infrastructure Urban

26 Jul 2025

India Unveils Rs 600 Billion Maritime Finance Push

The Ministry of Ports, Shipping & Waterways (MoPSW) hosted the Maritime Financing Summit 2025 in New Delhi, bringing together over 250 stakeholders including policymakers, industry leaders, global investors, and financial institutions. The summit, held under the ambit of Maritime Amrit Kaal Vision (MAKV) 2047, focused on transforming India into a leading maritime power with strengthened financial, infrastructural, and technological capabilities.Union Minister Sarbananda Sonowal emphasised India's strategic progress, noting that average port turnaround times have dropped from four days to u..

Infrastructure Urban

26 Jul 2025

Govt Allocates Rs 500 Million To Boost Community Radio

The Central Government, through its ‘Supporting Community Radio Movement in India’ scheme, has allocated Rs 500 million to strengthen the community radio ecosystem across the country. The initiative aims to assist both newly established and long-operational Community Radio Stations (CRSs), ensuring their relevance to local educational, social, cultural, and developmental needs.According to the policy published by the Ministry of Information and Broadcasting, CRSs may be set up by not-for-profit organisations with at least three years of demonstrated community service. These stations are ex..

Indore receives Rs 7.2 bn green bonds to develop largest solar plant

India to Invest Rs 600 Billion to Upgrade 1,000 ITIs

India Unveils Rs 600 Billion Maritime Finance Push

Govt Allocates Rs 500 Million To Boost Community Radio

Latest Updates

Recommended for you

Advertisement

Subscribe to Our Newsletter

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Modal Heading

First Name *

Last Name *

Industry *

Email Address *

Mobile Number *

Password *

Confirm Password *

Subscribe to our Newsletter

Email Address *

Password *

Please enter the details

Email Address

Modal Heading

First Name *

Last Name *

Industry *

Email Address *

Mobile Number *

Password *

Confirm Password *

Subscribe to our Newsletter

Email Address *

Password *

Please enter the details

Email Address