Pimpri-Chinchwad makes history: Maharashtra's first civic body to list green municipal bonds on BSE
In a major milestone for municipal climate financing in India, the 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.
The bell-ringing ceremony held at the BSE witnessed an enthusiastic turnout, with Chief Minister Devendra Fadnavis terming PCMC's achievement as a proud moment for the state.
Highlighting the growing importance of using market instruments to raise funds for sustainability projects in urban governance, Fadnavis said, 'As soon as the bonds were 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, held to mark the official listing of the bonds, which were oversubscribed 5.13 times, receiving bids worth Rs 513 crore.
These funds will be utilised for the Harit Setu project in Nigdi Pradhikaran and for 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.
PCMC Commissioner Shekhar Singh expressed gratitude to the investing community, saying, '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 the occasion, the CM also felicitated Singh with a special listing memento presented on behalf of the BSE.
India Leads, Maharashtra Delivers: The Green Bond Revolution! 🌿📈
A historic experience to ring the bell at the Bombay Stock Exchange to mark the listing of the 'Green Municipal Bond' of Pimpri-Chinchwad Municipal Corporation in Mumbai.
Pimpri-Chinchwad Municipal Corporation… https://t.co/hd1IkkLdYv pic.twitter.com/AizsbQVAmU
— Devendra Fadnavis (@Dev_Fadnavis) June 10, 2025
Also present were MLCs Uma Khapre, Amit Gorkhe, and MLAs Mahesh Landge and Shankar Jagtap, who lauded the initiative, with Jagtap remarking that such financial tools can 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.'
The BSE 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 A K 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%. 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 incentive from the Centre for successfully executing this bond issue.
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