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.

Real Estate

07 Aug 2026

BXB Estates Sets AED 110 Million Jumeirah Golf Estates Record

BXB Estates has completed an AED 110 million residential transaction at Jumeirah Golf Estates, setting a new sales record for the prestigious Dubai residential community.Negotiated by Alfie Tabrez, Managing Partner of BXB Estates, the deal surpassed the previous record of AED 58 million for a completed ready villa in the development.The six-bedroom residence offers 21,714 sq ft of built-up space on a 15,873-sq-ft plot. It features nine bathrooms, four living lounges, a home office, bar lounge, private cinema and rooftop terrace.The property also includes a dedicated wellness area comprising a ..

Infrastructure Urban

07 Aug 2026

SECR Floats Rs 6,019 Mn EPC Tender For Paradol Nagpur Link

South East Central Railway (SECR) has invited bids for an Engineering, Procurement and Construction (EPC) contract to build a new broad gauge single line between Paradol Takeoff Point and Nagpur Road Station in Chhattisgarh. The contract carries an estimated cost of Rs 6,019.0 mn and requires an earnest money deposit of Rs 120.4 mn. The work is framed as an EPC assignment intended to strengthen regional rail infrastructure. The tender, issued under number CAO-C-BSP-26-27-15, specifies a completion period of 730 days and a bid validity of 180 days. Two pre-bid meetings are scheduled for 24 Augu..

Infrastructure Transport

07 Aug 2026

Indian Railways Reports Nine Per Cent Rise In July Freight Loading

Indian Railways handled 141.3 million tonnes (141.3 mn t) of freight in July, marking a rise of nine per cent year on year. Freight loading maintained a positive trajectory across the network compared with the same month last year. Passenger traffic also increased in July, contributing to higher overall network utilisation. The July outcome continued a pattern of steady monthly gains, reflecting gradual improvement in industrial and logistics activity. The growth in freight volumes reflected stronger demand across multiple sectors and improvements in logistics and train turnarounds. Enhanced r..