Pune, June 4 — The Pimpri Chinchwad Municipal Corporation (PCMC) has successfully raised ₹200 crore through Maharashtra’s first-ever green municipal bond, marking a significant step in sustainable urban infrastructure financing. The bond issue, which aims to fund a 100% sewage treatment and recycled water supply project, was oversubscribed by 5.13 times, attracting bids worth over ₹1,026 crore.
The 10-year bond, carrying an interest rate of 8.25%, was issued to fund eco-friendly initiatives within PCMC limits. The proceeds will be directed towards the development of sustainable sewage treatment facilities and ensuring the supply of treated water for non-potable purposes such as industrial use, gardening, and construction. This initiative is part of PCMC’s commitment to achieving net-zero discharge and aligning with the United Nations Sustainable Development Goals (SDGs).
The bond has been listed under the “Green Debt Securities” category on the Bombay Stock Exchange (BSE) and received a credit rating of AA+ from CARE Ratings. The high subscription rate is being seen as a strong vote of confidence from the investor community in PCMC’s governance and fiscal strength.
“This is a proud moment for the city and a major milestone in Maharashtra’s journey towards sustainable urban development,” said PCMC Commissioner Shekhar Singh. “The overwhelming response to our green bond highlights the market’s trust in our vision and strategy for environmentally responsible infrastructure.”
Green municipal bonds have been gaining traction across India as urban local bodies seek innovative ways to finance climate-resilient infrastructure. PCMC now joins cities like Indore and Ghaziabad that have previously issued green bonds for projects such as waste management and water treatment.
The project being funded through this bond is expected to significantly reduce the environmental burden on rivers and promote the reuse of treated wastewater, reducing dependency on freshwater resources. Officials have confirmed that the infrastructure will include advanced sewage treatment plants and the development of a parallel pipeline network to distribute treated water.
Urban planners and financial experts have welcomed the move, saying it demonstrates how municipalities can independently raise funds for critical projects while contributing to national climate action goals.
The successful issuance is expected to inspire other municipal bodies in Maharashtra and across India to explore green bonds and other sustainable financing tools. With growing emphasis on climate-friendly urbanization, such initiatives are likely to become more common in the years ahead.
