Pune: PCMC to Raise Rs 200 Crore via Green Bonds for Sustainable Development Projects
Pimpri Chinchwad, 18th February 2025: Pimpri Chinchwad Municipal Corporation (PCMC) is set to raise Rs 200 Crore through green bonds. The Maharashtra Government has given the green light for this initiative, aimed at reducing carbon emissions, easing traffic congestion, developing cycling tracks, and improving air quality in the city.
The green bonds will fund environmentally friendly projects that contribute positively to climate change mitigation and environmental protection. The proposal received approval from the Standing Committee on 9th July 2024, and the General Body on 16th July 2024, before being sent to the Maharashtra Government for final authorization.
Credit Rating Information Services of India Limited (CRISIL) has awarded the PCMC’s bond proposal an ‘AA+’ stable rating, indicating the corporation’s strong financial position. The funds raised will be used for projects such as the Harit Setu office in the Nigdi-Pradhikaran area and the implementation of a non-motorized transportation scheme.
Key conditions for the bond issuance include:
1. PCMC must open an account with a nationalized bank to ensure timely repayment.
2. The corporation is solely responsible for repaying the loan and interest, with no government guarantee.
3. Regular reports on bond issuance and repayment must be submitted to the government.
4. Funds must be used only for the intended projects, and all legal requirements must be met.
5. The actual loan drawdown should be based on necessity, despite the 200 crore rupee limit.
PCMC Commissioner Shekhar Singh stated that the central government will provide a Rs 20 Crore incentive for this initiative. He emphasized that the approval for raising green bonds reflects the corporation’s excellent financial health and will play a crucial role in realizing the concept of a more sustainable Pimpri-Chinchwad.
What are Green Bonds?
A green bond is a type of loan that governments, companies, or organizations use to raise money for eco-friendly projects. These projects can include renewable energy, clean transportation, sustainable buildings, and water conservation. Investors buy green bonds, and in return, they receive interest over time, just like regular bonds. The key difference is that the money raised must be used for environmental benefits. Green bonds help fight climate change by funding projects that reduce pollution and support sustainability. They are becoming popular worldwide as more people and businesses focus on protecting the planet while earning returns on their investments.
