Pimpri Chinchwad Municipal Corporation (PCMC) has been cleared by the Maharashtra Government to raise ₹200 crore as green bonds. The funds will be used to fund green projects that will reduce carbon emissions, purify the air, reduce road congestion, and promote non-motorized transport like cycling tracks.
The scheme, approved by the Standing Committee on 9th July 2024 and General Body on 16th July 2024, has been rated ‘AA+’ stable by CRISIL, crediting PCMC’s financial health. The schemes include the Harit Setu office at Nigdi-Pradhikaran and a non-motorized transport scheme.
The major requirements of the issuance of bonds are opening a nationalized bank account, repayment to themselves without the guarantee of the government, filing periodic reports, and spending the money only on specified projects. The central government will also offer a ₹20 crore incentive for the scheme.
What are Green Bonds? Green bonds are capital instruments that are used for funding green initiatives like renewable power, clean transportation, and water conservation. Return is provided by investors as they fund sustainability and climate change mitigation.
