The Pimpri Chinchwad Municipal Corporation (PCMC), responsible for managing the development of the city on the northwestern edge of Pune, is exploring the issuance of Green Bonds to raise approximately Rs 200 crore for urban development projects. This initiative is part of the city’s broader efforts to promote sustainable growth while upgrading its infrastructure. The corporation has engaged Palladium, a global development consulting firm, as the technical consultant for the Green Bond fundraising process.
The funds raised through the Green Bonds will be directed toward the development of key urban infrastructure projects under the Haritsetu Project. This includes the improvement of the road network in the city and the development of Telco Road, which stretches from Gawali Matha to Indrayani Nagar Chowk. The focus will be on non-motorized transport infrastructure such as walking pathways, cycling tracks, and the redesign of traffic junctions to improve pedestrian mobility and reduce carbon emissions.
Green Bonds are financial instruments that attract investors who are focused on projects aligned with Environmental, Social, and Governance (ESG) principles. These bonds typically offer favorable terms compared to traditional bonds, making them an attractive financing option for municipal corporations that seek to fund projects aimed at reducing environmental impact.
PCMC’s foray into green financing represents a growing trend among Indian cities to incorporate sustainable financing mechanisms for urban development. Municipal Bonds, which are also under consideration, could serve as an additional funding tool for future infrastructure projects.
In addition to infrastructure, the PCMC is also working on several environmentally significant projects, including solid waste management and water conservation measures. The introduction of Green Bonds will help the city meet its environmental sustainability goals while ensuring that the ongoing urbanization process remains both inclusive and eco-friendly.
