Indore becomes first civic body to launch green bonds

Indore Municipal Corporation has ranked top in cleanliness survey for six consecutive years, has become the country’s first civic body to launch green bonds, seeking to raise Rs 244 crore for a 60-mw solar plant at its water pumping station. The public issues of the green bonds will be open for subscription from February 10-14. The issue will be listed on the National Stock Exchange.

Buy Prime Test Series for all Banking, SSC, Insurance & other exams

The drinking water department of the city administration spends over Rs 300 crore in annual electricity charges. Its Juladh pumping station, by the Narmada river falling in the Khargone district, is the biggest pumping station for the city. The balance amount will come from the Centre: Rs 41 crore as viability gap funding and Rs 26 crore or 13 per cent special incentives that the Centre offers to municipalities for launching bonds. The Centre caps this 13 per cent incentive for only up to Rs 200 crore of bond sales.

What is meant by green bonds?

A green bond is a debt security issued by an organization for the purpose of financing or refinancing projects that contribute positively to the environment and/or climate. A green bond is alternatively known as a climate bond.