Maharashtra CM Highlights Nashik Municipal Corporation’s Green Bond Initiative for Infrastructure
CM Fadnavis says municipal bonds can fund urban development, citing Nashik’s green bond success.
Maharashtra Chief Minister Devendra Fadnavis on Monday highlighted the potential of capital markets to finance urban development, suggesting that municipal corporations can raise essential funds for infrastructure and public welfare projects by issuing bonds. He cited the Nashik Municipal Corporation (NMC) model as an example of “Innovative Funds” that can significantly boost city development.
CM Fadnavis made the remarks after performing the ceremonial ‘Ringing of the Bell’ at the National Stock Exchange (NSE) to mark the listing of NMC’s Green Bond. He noted that Nashik Municipal Corporation successfully entered the capital market by issuing municipal bonds through both private placement and public offerings within a single financial year, setting a precedent for other urban bodies.
Emphasizing the role of capital markets, the Chief Minister urged municipal corporations to leverage these platforms to fund public welfare initiatives. He said, "The Central Government has already announced schemes to support this. Initially, approval was granted for bonds up to Rs 200 crore. Given the success, the budget limit for these bonds has been increased to Rs 1,000 crore, with incentive values raised to Rs 200 crore."
Highlighting ongoing projects in Nashik, CM Fadnavis said developmental works worth around Rs 25,000 crore are underway in preparation for the Kumbh Mela. He stressed that the infrastructure being created is not just for the mega-event but will elevate Nashik into the league of developed metropolises, turning the city into a “magnet for investment.”
Through central government incentives and the Urban Challenge Fund, the NMC will receive interest-free funds directed towards public water supply projects. These initiatives aim to reduce water leakage from 47% to 20%. CM Fadnavis also encouraged smaller municipal corporations to collaborate and issue collective bonds worth Rs 1,000 crore to benefit from central schemes, promoting qualitative urban development through innovative funding.
According to a government release, proceeds from the bonds will support critical infrastructure projects, including the capacity expansion of the Mukane Dam Pumping Station, construction of a new Water Treatment Plant at Vilholi, and laying a main gravity line from the Vilholi plant to Sadhugram. The primary goal is to ensure a clean and safe drinking water supply for Nashik residents during the Kumbh Mela and for the city’s long-term development.
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