- The Indore Municipal Corporation, which has topped the cleanliness survey for six consecutive years, has become the first civic body in the country to launch a green bond, seeking to raise Rs 244 crore for a 60 MW solar plant at its water pumping station.
- The public issue of green bonds will be open for subscription from February 10 to 14. The issue will be listed on the National Stock Exchange.
- The drinking water department of the city administration spends more than Rs 300 crore annually in the electricity bill. Its Juladh pumping station, on the banks of the Narmada River, falling in Khargone district, is the city’s largest pumping station.
- The balance amount will come from the Centre: Rs 41 crore as viability gap funding and Rs 26 crore or 13% special incentives that the Centre offers to municipalities for launching bonds. The Centre caps this 13% incentive for only up to Rs 200 crore of bond sales.
What is Green Bonds?
Green bonds (also known as climate bonds) are fixed-income financial instruments (bonds) used to fund projects with positive environmental and/or climate benefits. They follow the Green Bond principles as stated by the International Capital Market Association (ICMA), and the proceeds from the issuance are to be used for pre-specified types of projects.