India’s First Green Bond-Funded Solar Plant in Khargone to Slash Civic Costs by Millions
Indore’s green bond-funded solar plant to cut water project power costs.
The Indore Municipal Corporation (IMC) is poised to launch a groundbreaking 60-megawatt solar power plant in Jalud village, Khargone district, by November 2025, marking a significant step toward sustainable energy in Madhya Pradesh. Financed through a pioneering Rs 244 crore public issue of green bonds, this project is the first of its kind in India. The Rs 308-crore facility, spanning 220 acres, was initiated with a foundation stone laid by Prime Minister Narendra Modi in December 2025, underscoring its national significance.
The solar plant aims to alleviate the financial burden of the Narmada water project, which supplies water to Indore from 80 km away. According to Mayor Pushyamitra Bhargav, the IMC currently incurs a monthly electricity cost of Rs 25 crore to pump water from the Narmada River. The Jalud solar plant is expected to reduce this expenditure by approximately Rs 5 crore per month, offering substantial savings while promoting renewable energy adoption in the region.
The project is in its final stages, with officials confirming that the plant is nearly complete. The ongoing charging tests and resolution of transmission line issues are the last hurdles before the plant begins generating electricity in November. This initiative not only enhances Indore’s energy sustainability but also sets a precedent as the first urban local body in India to establish a renewable energy plant funded through green bonds, a model for future civic projects.
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Mayor Bhargav emphasized the plant’s role in reducing dependency on conventional power sources, aligning with national goals for clean energy. The successful implementation of this project highlights the potential of green financing in urban infrastructure development, positioning Indore as a leader in innovative municipal governance and environmental stewardship.
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