In a landmark move for municipal climate financing in India, the Pimpri Chinchwad Municipal Corporation (PCMC) successfully listed its ₹200 crore Green Municipal Bonds on the Bombay Stock Exchange (BSE) on Tuesday. This makes PCMC the first civic body in Maharashtra to raise capital exclusively for sustainable urban mobility projects through this financial route.
The listing was marked by a bell-ringing ceremony at the BSE in Mumbai, drawing significant attention. Maharashtra Chief Minister Devendra Fadnavis described the moment as a proud achievement for the state. Emphasizing the importance of using market-based instruments for urban sustainability projects, he said, “The base amount of ₹100 crore was subscribed within the first minute of issuance. This reflects both the strength of PCMC’s vision and the confidence investors have in Maharashtra’s governance. Prime Minister Narendra Modi has been consistently urging urban bodies to explore municipal bonds, and PCMC has shown the way forward.”
Deputy Chief Ministers Eknath Shinde and Ajit Pawar also attended the event, which celebrated the official listing of bonds that were oversubscribed by 5.13 times, receiving bids worth ₹513 crore.
The funds raised will be used for the Harit Setu project in Nigdi Pradhikaran and a sustainable mobility corridor from Gawalimatha to Indrayani Nagar Chowk on Telco Road. Both initiatives form part of the city’s broader climate and environmental strategy, aimed at promoting the “15-Minute City” concept through green infrastructure.
The project also represents one of India’s early demonstrations of integrated last- and first-mile connectivity for Metro and BRTS (Bus Rapid Transit System) through active mobility solutions.
PCMC Commissioner Shekhar Singh expressed his appreciation to investors, saying, “This is not just a financial milestone—it’s a bold step towards building a greener, smarter, and more resilient Pimpri Chinchwad. The trust shown by investors today affirms our direction. These funds will go beyond infrastructure, contributing to climate-conscious urban development.”
To mark the occasion, Chief Minister Fadnavis presented Commissioner Shekhar Singh with a commemorative memento from the Bombay Stock Exchange.
Among those present were MLCs Uma Khapre and Amit Gorkhe, and MLAs Mahesh Landge and Shankar Jagtap, who praised the initiative. Jagtap noted that similar financial instruments could be considered for wider social infrastructure development in the future.
Chief Secretary Sujata Saunik described the listing as a benchmark in urban innovation, stating, “The overwhelming response from investors demonstrates the credibility of institutions like PCMC. As urbanisation accelerates, sustainable development must remain a top priority—this initiative is a model worth emulating.”
Also attending were senior officials including Urban Development Additional Chief Secretary Aseem Gupta, Principal Secretary KH Govindaraj, MCGM Commissioner Bhushan Gagrani, and commissioners from several other municipal bodies, alongside PCMC officials including Additional Commissioners Pradip Jambhale Patil and Trupti Sandbhor, Chief Finance Officer Pravin Jain, Joint City Engineer Bapusaheb Gaikwad, Deputy Commissioner Anna Bodade, Executive Engineer Sunil Pawar, and PRO Prafulla Puranik.
Representing the Bombay Stock Exchange, Managing Director Sundararaman Ramamurthy congratulated PCMC and reiterated BSE’s commitment to supporting municipal bond issuances. Aditi Mittal, Managing Director of AK Capital Services Ltd., the merchant banker and advisor for the transaction, was also present.
The Green Bonds have been rated AA+ by CRISIL and CARE and offer a competitive interest rate of 7.85%. Repayment will be managed through an escrow account backed by PCMC’s property tax revenues.
PCMC’s strong financial management and alignment with national climate goals earned it an incentive of ₹20 crore from the Government of India for the successful execution of this bond issue.
With this pioneering step, PCMC has not only introduced a forward-looking financing model but also demonstrated how local governments can integrate climate finance into mainstream governance—setting a precedent for other cities across the country.
