Pimpri Chinchwad is Maharashtra's 1st to list Green Municipal Bonds on BSE

Business Standard

11-06-2025

In a major milestone for municipal climate financing in India, Pimpri Chinchwad Municipal Corporation (PCMC) on Tuesday successfully listed its Rs 200 crore Green Municipal Bonds on the Bombay Stock Exchange (BSE), becoming the first civic body in Maharashtra to raise funds exclusively for sustainable mobility urban projects through this route.
The bell-ringing ceremony held at the BSE in Mumbai witnessed an enthusiastic turnout, with Maharashtra Chief Minister Devendra Fadnavis terming PCMC's achievement as a proud moment for the state.
Highlighting the growing importance of using market instruments for sustainability projects in urban governance, Chief Minister Fadnavis noted, "As soon as the bond was issued, the base amount of Rs 100 crore was subscribed within the very first minute. This is not only a testament to the strength of PCMC's vision but also to the trust investors place in Maharashtra's governance. Prime Minister Narendra Modi has been consistently encouraging urban bodies to raise resources through municipal bonds, and PCMC has taken the lead in this direction. The listing process is complex and requires high levels of diligence--I congratulate every official, institution and partner involved in making this happen."
Deputy Chief Ministers Eknath Shinde and Ajit Pawar were also present at the ceremony, which marked the official listing of the bonds, which were oversubscribed 5.13 times and received bids worth Rs 513 crore.
These funds will be utilised for the Harit Setu project in Nigdi Pradhikaran and for the sustainable mobility development project from Gawalimatha to Indrayani Nagar Chowk on Telco Road - both key components of the city's long-term environment and climate strategy through the encouragement of the 15-Minute City Concept through Harit Setu.
The project will also be amongst the first proof of concept of last- and first-mile connectivity for Metro Transport and BRTS Bus Transport through active mobility.
PCMC Commissioner Shekhar Singh expressed gratitude to the investing community, stating, "This is more than just a financial accomplishment--it's a bold step toward building a greener, smarter, and more resilient Pimpri Chinchwad. The investor confidence shown today is a strong endorsement of our direction. We are committed to using these funds not just for infrastructure but to promote green and climate-aligned urban development."
On this occasion, Chief Minister Fadnavis also felicitated Commissioner Shekhar Singh with a special listing memento presented on behalf of the Bombay Stock Exchange.
Also present were MLCs Uma Khapre and Amit Gorkhe and MLAs Mahesh Landge and Shankar Jagtap, who lauded the city's initiative. Jagtap remarked that such financial tools could also be explored for broader social infrastructure in the future.
Chief Secretary Sujata Saunik praised the move as a benchmark in urban innovation, saying, "The enthusiastic response from investors clearly reflects the credibility of public institutions like PCMC. As urbanisation accelerates, sustainable growth must remain our priority--and PCMC's move is a model worth replicating."
Chief Secretary Sujata Sounik and senior officials including Urban Development Additional Chief Secretary UD-1 Aseem Gupta, Principal Secretary UD-2 KH Govindaraj, MCGM Commissioner Bhushan Gagrani, NMMC Commissioner Kailash Shinde, KDMC Commissioner Abhinav Goyal, Bhiwandi Commissioner Anmol Sagar, Ulhasnagar Commissioner Manisha Awhale and Panvel Commissioner Mangesh Chitale were present at the event, along with PCMC Additional Commissioners Pradip Jambhale Patil and Trupti Sandbhor, Chief Accounts and Finance Officer Pravin Jain, Joint City Engineer Bapusaheb Gaikwad, Deputy Commissioner Anna Bodade, Executive Engineer Sunil Pawar, and Public Relations Officer Prafulla Puranik.
The Bombay Stock Exchange was represented by its Managing Director Sundararaman Ramamurthy, who congratulated PCMC and outlined BSE's role in facilitating municipal bond transactions. Aditi Mittal, Managing Director of AK Capital Services Ltd., the transaction's merchant banker and advisor, also attended the ceremony.
The Green Bonds, rated AA+ by both CRISIL and CARE, carry a competitive interest rate of 7.85 per cent. Repayments are secured through an escrow account backed by PCMC's Property Tax collections.
The civic body's strong fiscal discipline and its alignment with national green goals enabled it to secure Rs 20 crore as an incentive from the Government of India for successfully executing this bond issue.
With this landmark moment, PCMC has not only unlocked an innovative funding mechanism but also demonstrated how climate finance can be mainstreamed into local governance--setting an example for other cities across India to follow.