The IMC is the first urban body in the country to introduce green bonds as a public offering for a solar power plant: City Mayor
In a first-of-its-kind initiative in India, the Indore Municipal Corporation (IMC) in Madhya Pradesh will launch green bonds in the form of public issue on February 10 to raise capital for setting up a solar power plant, an official said on Friday.
The civic body of the country's cleanest city aims to raise Rs 245 crore through the bonds to set up a 60 MW capacity solar plant, the official said.
"The IMC is the first urban body in the country to introduce green bonds as a public offering for a solar power plant," city mayor Pushyamitra Bhargava told the media.
He said at least Rs 245 crore raised through green bonds will be used to set up a solar power plant, and the power generated from it will be used to pull water from Narmada river in Jalud village in neighbouring Khargone district, situated about 80 km away, and supply it to Indore.
The total expenditure on setting up the solar power plant is estimated to be Rs 300 crore, the official said.
He adds, every person investing in the green bonds will be given an annual return of about 8.25 per cent after a stipulated period.
The public issue will open on February 10 and close on February 14, the official said, adding that the bond is expected to be listed on the National Stock Exchange on February 24.
The civic body has been spending Rs 300 crore every year to bring Narmada water to Indore by running motor pumps at Jalud, he said.
"When the proposed solar power plant at Jalud recovers its cost, the civic body will save Rs 7 crore every month in the exercise of pulling Narmada water from there to Indore," the official said.
He further added, the tender for the construction of a solar power plant has already been floated and once awarded, it will take two years to be built.