Indore Municipal Corporation is the first urban body in the country to introduce green bonds as a public offering for the solar power plant
In a first-of-its-kind initiative in India, the Indore Municipal Corporation (IMC) has garnered Rs 661.52 crore on the first day of a public issue of green bonds to raise capital for setting up a Rs 244 crore solar power plant.
The green bond was oversubscribed by 5.42 times against the base price of Rs 122 crore, an official said.
The public issue will close on Tuesday. Madhya Pradesh Chief Minister Shivraj Singh Chouhan tweeted, "Congratulation to Indore again! The investors and commoners have overwhelmingly responded to the green bonds of Indore which has bagged India's cleanest city award for the six consecutive times, and made it number one."
The civic body of the country's cleanest city is going to set up a 60 MW capacity solar plant.
IMC is the first urban body in the country to introduce green bonds as a public offering for the solar power plant, the official said.
The power generated from the plant will be used for pulling water from Narmada river in Jalud village in neighbouring Khargone district, situated about 80 km away, and supplying it to Indore, he said.
The civic body has been spending Rs 300 crore every year to bring Narmada water to Indore by running motor pumps at Jalud.
When the proposed solar power plant at Jalud recovers its cost, IMC will save a huge amount every month in the exercise of pulling Narmada water from there to Indore, the official said.
The tender for the construction of the solar power plant has already been floated. Once awarded, it will take two years to be built, he added.