The Pimpri Chinchwad Municipal Corporation (PCMC) on Tuesday became the first civic body in Maharashtra to raise capital exclusively for sustainable urban transport through green municipal bonds, listing its Rs 200-crore issue on the Bombay Stock Exchange (BSE).
Chief minister Devendra Fadnavis, who attended the bell-ringing ceremony in Mumbai, called it a ‘proud moment for the state.’ He said, “The base amount of Rs 100 crore was subscribed within the first minute of issue. This reflects not only the strength of PCMC’s vision but also the trust investors place in Maharashtra’s governance.”
The bond issue was oversubscribed by 5.13 times, drawing bids worth Rs 513 crore. The funds will go towards two sustainable infrastructure projects – the Harit Setu in Nigdi-Pradhikaran and a green mobility corridor between Gawalimatha and Indrayaninagar Chowk on Telco Road.
Both projects form part of PCMC’s urban transformation plan under the 15-minute city concept, aimed at reducing travel times and enhancing first and last-mile connectivity through integration with metro and Bus Rapid Transit System (BRTS) networks.
The initiative aligns with the Centre’s push for greater municipal participation in financial markets. “PM Narendra Modi has consistently encouraged urban local bodies to explore market instruments like municipal bonds to finance their development agendas,” Fadnavis added.
PCMC’s green bonds are structured to comply with the Securities and Exchange Board of India (SEBI) guidelines for green debt securities and will be monitored to ensure proceeds are used exclusively for climate-resilient infrastructure.
Experts see this as a template for other urban bodies seeking to fund low-emission and people-centric mobility solutions. As Indian cities grapple with rising pollution and transit bottlenecks, green bonds offer a viable model to finance climate-smart infrastructure while maintaining fiscal discipline.