Indore becomes the first civic body in the country to launch green bonds

Tags: National News

Indore Municipal Corporation has become the first civic body in the country to issue green bonds.

An overview of the news:

• The corporation plans to raise Rs 244 crore through green bonds.

• This amount will be used to set up a 60 MW solar plant at Juladh Pumping Station in Hum Samraj and Ashukhedi villages on the banks of river Narmada falling in Khargone district with an investment of about Rs 305 crore.

• Indore Municipal Corporation pumps water from Juladh Pumping Station for drinking water supply in the city. For this, 25 crore rupees are spent on electricity bill every month. After the commissioning of this plant, the cost of electricity will be reduced by five to six crore rupees annually.

• This bond of Indore Municipal Corporation will open between 10-14 February 2023. And later it will be listed on the National Stock Exchange.

What is Green Bond?

• Green bonds are a means of obtaining debt through which funds are raised for 'green' projects, mainly related to renewable energy, clean transportation, sustainable water management, etc.

• A green bond is issued by an organisation for the purpose of financing or refinancing projects that make a positive contribution to the environment and/or climate.

• Green bonds were first announced by Union Finance Minister Nirmala Sitharaman while presenting the budget for the financial year 2022-23.