PCMC Explores Green Financing for Development Projects
ECONOMY & POLICY

PCMC Explores Green Financing for Development Projects

The Pimpri Chinchwad Municipal Corporation (PCMC), a progressive municipal body in Pune, is taking a major step towards sustainable urban development by exploring green financing options for several infrastructure projects. The PCMC has announced its plan to raise Rs. 200 crore through Green Bonds, a financial instrument that will be used to fund projects aimed at improving the city’s infrastructure while adhering to environmental, social, and governance (ESG) standards. This move is a significant step in the city’s efforts to become a model of sustainable urban development in Maharashtra.

The funds raised from the issuance of Green Bonds will primarily be allocated to the Haritsetu Project, an initiative that seeks to develop sustainable urban mobility solutions. This project includes the development of new roads and the creation of walkways and cycling tracks along key thoroughfares in the city. The goal is to reduce congestion, promote greener forms of transportation, and enhance the overall quality of life for residents. Additionally, the proceeds will also contribute to the Telco Road development, which includes several urban rejuvenation initiatives aimed at enhancing pedestrian and cyclist safety.

Palladium India, a leading advisory firm specializing in sustainable finance, has been appointed to assist the municipal corporation with the issuance of the Green Bonds. The firm will guide PCMC through the process of structuring the bonds and ensuring that the funds raised comply with international standards for green financing. The initiative marks a shift in the way local governments approach funding for urban infrastructure, as it aligns with the global movement toward climate-conscious investments.

The Green Bonds will also play a role in addressing key environmental issues in Pimpri Chinchwad, such as pollution reduction and the promotion of cleaner air quality. By focusing on projects that prioritize sustainability, the PCMC aims to make the city a more resilient and eco-friendly urban center. The projects will contribute to the broader vision of a “smart city,” where technology and sustainability are integral components of the urban environment.

The Green Bonds issuance aligns with India’s national goals to meet the Paris Agreement targets and increase the adoption of green financing across sectors. The government of India has set ambitious targets to increase investments in renewable energy and low-carbon infrastructure, and local governments are now playing a key role in driving these initiatives at the grassroots level.

PCMC’s decision to tap into the growing market for green bonds represents a growing trend among Indian cities that are looking for sustainable financing options to fund infrastructure projects. By raising capital through Green Bonds, the corporation can finance its green infrastructure projects while simultaneously attracting socially responsible investors who are keen on supporting environmental and climate-positive endeavors.

As part of its green initiative, the municipal corporation is also working on creating more green spaces and improving waste management systems to reduce environmental impact. The development of public parks, waste-to-energy plants, and the promotion of solar power installations on public buildings are some of the other projects that will be financed using the funds raised from Green Bonds.

The move comes at a time when there is a significant push for sustainable urban development across India. Many cities are adopting green financing mechanisms to tackle urbanization challenges such as pollution, congestion, and resource scarcity. The Pimpri Chinchwad Municipal Corporation’s Green Bond initiative is expected to pave the way for other local governments in the country to explore similar financing options for sustainable infrastructure projects.

The Pimpri Chinchwad Municipal Corporation (PCMC), a progressive municipal body in Pune, is taking a major step towards sustainable urban development by exploring green financing options for several infrastructure projects. The PCMC has announced its plan to raise Rs. 200 crore through Green Bonds, a financial instrument that will be used to fund projects aimed at improving the city’s infrastructure while adhering to environmental, social, and governance (ESG) standards. This move is a significant step in the city’s efforts to become a model of sustainable urban development in Maharashtra. The funds raised from the issuance of Green Bonds will primarily be allocated to the Haritsetu Project, an initiative that seeks to develop sustainable urban mobility solutions. This project includes the development of new roads and the creation of walkways and cycling tracks along key thoroughfares in the city. The goal is to reduce congestion, promote greener forms of transportation, and enhance the overall quality of life for residents. Additionally, the proceeds will also contribute to the Telco Road development, which includes several urban rejuvenation initiatives aimed at enhancing pedestrian and cyclist safety. Palladium India, a leading advisory firm specializing in sustainable finance, has been appointed to assist the municipal corporation with the issuance of the Green Bonds. The firm will guide PCMC through the process of structuring the bonds and ensuring that the funds raised comply with international standards for green financing. The initiative marks a shift in the way local governments approach funding for urban infrastructure, as it aligns with the global movement toward climate-conscious investments. The Green Bonds will also play a role in addressing key environmental issues in Pimpri Chinchwad, such as pollution reduction and the promotion of cleaner air quality. By focusing on projects that prioritize sustainability, the PCMC aims to make the city a more resilient and eco-friendly urban center. The projects will contribute to the broader vision of a “smart city,” where technology and sustainability are integral components of the urban environment. The Green Bonds issuance aligns with India’s national goals to meet the Paris Agreement targets and increase the adoption of green financing across sectors. The government of India has set ambitious targets to increase investments in renewable energy and low-carbon infrastructure, and local governments are now playing a key role in driving these initiatives at the grassroots level. PCMC’s decision to tap into the growing market for green bonds represents a growing trend among Indian cities that are looking for sustainable financing options to fund infrastructure projects. By raising capital through Green Bonds, the corporation can finance its green infrastructure projects while simultaneously attracting socially responsible investors who are keen on supporting environmental and climate-positive endeavors. As part of its green initiative, the municipal corporation is also working on creating more green spaces and improving waste management systems to reduce environmental impact. The development of public parks, waste-to-energy plants, and the promotion of solar power installations on public buildings are some of the other projects that will be financed using the funds raised from Green Bonds. The move comes at a time when there is a significant push for sustainable urban development across India. Many cities are adopting green financing mechanisms to tackle urbanization challenges such as pollution, congestion, and resource scarcity. The Pimpri Chinchwad Municipal Corporation’s Green Bond initiative is expected to pave the way for other local governments in the country to explore similar financing options for sustainable infrastructure projects.

Next Story
Infrastructure Energy

Vedanta Aluminium Uses 1.57 bn Units of Green Energy in FY25

Vedanta Aluminium, India’s largest aluminium producer, recently reported consumption of 1.57 billion units of renewable energy in FY25, marking a significant milestone in its 2030 decarbonisation roadmap. The company also achieved an 8.96 per cent reduction in greenhouse gas (GHG) emissions intensity compared to FY21, reinforcing its leadership in India’s low-carbon manufacturing transition. During FY25, Vedanta Aluminium expanded its renewable energy portfolio through long-term power purchase agreements, strengthening its strategy to source nearly 1,500 MW of renewable power over the lon..

Next Story
Real Estate

Oberoi Group to Develop Luxury Resort at Makaibari Tea Estate

EIH Limited, the flagship company of The Oberoi Group, has announced the signing of a management agreement to develop an Oberoi luxury resort at the iconic Makaibari Tea Estate in Darjeeling. The project marks a key milestone in the Group’s long-term strategy of creating distinctive hospitality experiences in rare and environmentally significant locations. Established in 1859, Makaibari is one of the world’s oldest tea estates and is globally recognised for its Himalayan landscape, primary forests and exceptional biodiversity. Spread across 1,236 acres, the estate houses one of the world..

Next Story
Real Estate

GHV Infra Secures Rs 1.09 Bn EPC Order in Jamshedpur

GHV Infra Projects Ltd, a fast-growing EPC company in India’s infrastructure and construction sector, has recently secured a Rs 1.09 billion work order in Jamshedpur, Jharkhand. Awarded by a reputed group entity, the contract covers end-to-end civil construction, mechanical, electrical and plumbing (MEP) systems, along with high-quality finishing works for a large building development. The project will be executed over a 30-month period, with defined benchmarks for quality, safety and timely delivery. The order strengthens GHV Infra’s footprint in Jamshedpur, a key industrial hub known fo..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App