Green Municipal Bonds: Pimpri-Chinchwad Becomes First in the Country!

Pimpri Chinchwad | Through the issuance of Green Municipal Bonds, Pimpri-Chinchwad Municipal Corporation (PCMC) will now be able to develop green infrastructure within its jurisdiction. The bonds were issued at an interest rate of 7.57%. As the first municipal corporation in India to issue green bonds, PCMC will receive a ₹20 crore incentive grant from the Central Government. Prime Minister Narendra Modi has been advocating for access to capital and bond markets for municipal corporations. Pimpri-Chinchwad Municipal Corporation has successfully made the first move in that direction, stated Maharashtra Chief Minister Devendra Fadnavis.

PCMC has raised ₹200 crore through these green bonds to fund projects such as green bridges and environment-friendly urban development initiatives. The listing ceremony for the green municipal bonds was held at the BSE International Convention Hall in Mumbai, and the event was inaugurated by CM Devendra Fadnavis.

Key Dignitaries Present:

Deputy Chief Ministers Eknath Shinde and Ajit Pawar, MLAs Mahesh Landge, Shankar Jagtap, Amit Gorkhe, Uma Khapre, Sundar Raman Ramamurthy, Chief Secretary Sujata Saunik, Principal Secretaries Asim Gupta and Dr. K. Govindaraj, Advocate Gorakh Lokhande, PCMC Commissioner Shekhar Singh, and Praveen Jain, among others.

Appreciation for Commissioner Shekhar Singh:

CM Devendra Fadnavis praised Commissioner Shekhar Singh and the entire civic administration for this achievement. The industrial sector and investors have given a very positive response to the green municipal bond. Within just a few minutes of the bond listing, subscriptions crossed ₹100 crore. This reflects the investors’ trust in PCMC. Fadnavis also thanked all stakeholders, including bankers, auditors, and rating agencies, for their efforts.

₹200 Crore Raised via Green Bonds:

PCMC is the first municipal corporation in India to issue green bonds, raising ₹200 crore. Investor confidence was evident when ₹100 crore was subscribed in just one minute after the issue opened. In total, bids worth ₹513 crore were received — 5.13 times the bond value. The green bond received an AA+ rating from accredited rating agencies CRISIL and CARE. The bonds have a 5-year tenure with a competitive interest rate of 7.85%.

Green Bridge Project:

The raised funds will be utilized for two key infrastructure projects:

Green Bridge Project in Nigdi-Pradhikaran

Telco Road Development Project from Gawlimatha to Indrayani Nagar Chowk

The Green Bridge Project aims to connect public places through pedestrian and cycling paths, focusing on road safety and sustainable mobility. It will make it easier for citizens to access bus stops, metro stations, schools, colleges, banks, offices, parks, and religious places via walking or cycling. This pilot project is expected to reduce vehicle usage, save fuel, lower air and noise pollution, and promote a healthy urban environment. If successful, it will be implemented across the city.

A Proud Day for Pimpri-Chinchwad:

Today marks a proud moment for all citizens of Pimpri-Chinchwad. The city has become the first in the country to successfully list a Green Municipal Bond, receiving strong investor support. These green bonds will play a crucial role in developing green infrastructure and accelerating the city’s progress. The initiative has also earned a ₹20 crore grant from the Central Government.

“The Green Municipal Bond will boost the city’s development journey. I extend heartfelt thanks to the Chief Minister, Deputy Chief Ministers, and the municipal administration.”
– Mahesh Landge, MLA, BJP, Pimpri-Chinchwad, Pune