Mumbai (Maharashtra) [India], March 9 (ANI): The Nashik Municipal Corporation listed Maharashtra's Urban Local Body (ULB)'s 1st public issue of Green Municipal Bonds on the National Stock Exchange today.

Posting on its social media, NSE congratulated Nashik Municipal corporation saying, 'Congratulations to Nashik Municipal Corporation on listing of Maharashtra's ULB's 1st Public Issue of Green Municipal Bonds on NSE today.'

Maharashtra's Chief Minister, Devendra Fadnavis, was also present at the ceremony.

Ashish Chauhan, the Managing Director of National Stock Exchange (NSE), presented a replica of the NSE Bell to Maharashtra's Chief Minister Devendra Fadnavis, ahead of the public issue of green bonds of Nashik Municipal Corporation.

Municipal Green Bonds are essentially the fixed-income debt securities issued by local governing bodies such as municipal corporations to raise capital exclusively for projects with positive environmental or climate benefits.

The funds raised through these bonds are generally used for urban infrastructure under the municipal corporation that supports sustainability. Renewable energy, waste management, clean transportation, sustainable water management, and climate resilience are among the areas where these funds can be used for the welfare of the urban community at large.

Like conventional municipal bonds, they represent a loan from an investor to a local government.

However, unlike general-purpose bonds, 100 per cent of the funds raised must be earmarked for 'green' projects.

This move by the Nashik Municipal Corporation is a big step towards achieving India's goal of becoming net zero by 2047.

Ghaziabad was the first municipal corporation of India which has issued the green municipal bonds in 2021. The corporation raised Rs 150 crore to fund a tertiary sewage treatment plant. That marked a major step in the sustainable urban infrastructure.

Other than Ghaziabad, the Indore Municipal Corporation also issued bonds in early 2023 to fund a 60 megawatt solar power plant. (ANI)