Pimpri-Chinchwad Becomes India’s First Municipal Corporation to Raise Funds from Capital Market: CM Devendra Fadnavis

Mumbai : Municipal corporations that play a crucial role in the nation’s development must become financially self-reliant, a goal that Prime Minister Narendra Modi has consistently emphasized. Responding positively to the Prime Minister’s call, the Pimpri-Chinchwad Municipal Corporation (PCMC) issued Green Bonds — making it the first municipal corporation in the country to raise funds through the capital market, said Chief Minister Devendra Fadnavis today.

CM Fadnavis was speaking at the listing ceremony of PCMC’s Green Bonds at the Bombay Stock Exchange (BSE) International Convention Hall in Mumbai. The event was attended by Deputy CMs Eknath Shinde and Ajit Pawar, MLAs Mahesh Landge, Shankar Jagtap, Amit Gorkhe, Uma Tai Khapre, Chief Secretary Sujata Saunik, Mumbai Municipal Commissioner Bhushan Gagrani, PCMC Commissioner Shekhar Singh, Additional Chief Secretary Asim Gupta, Principal Secretary Dr. K. Govindaraj, and BSE MD Sundaram Ramamurthy.

The Chief Minister said that the Green Bonds issued by PCMC received an overwhelming response from investors. Within minutes of the issue going live, investments worth ₹100 crore were secured, and the investor demand increased fivefold thereafter. This demonstrates the strong trust investors place in green bonds. The bond tenure is five years, with a competitive interest rate fixed at 7.85%.

Fadnavis acknowledged that the process of listing bonds in the stock market is highly complex and subject to strict corporate regulations. Despite this, PCMC successfully completed the listing process. The funds raised will be used for infrastructure development projects — all designed to be green, eco-friendly, and aligned with sustainable development goals. He added that the Central Government has also provided an incentive grant of ₹20 crore for issuing green bonds. The Chief Minister congratulated the entire PCMC administration. Before the event began, the ceremonial bell was rung to mark the official listing on the BSE.

About the Green Bonds:

PCMC successfully raised ₹200 crore through its green bonds. These bonds were issued via the BSE’s electronic bidding system through private placements. The remarkable trust in PCMC’s governance was evident as ₹100 crore worth of bids were received within just one minute of the issue opening. Overall, the issue received bids worth ₹513 crore, i.e., 5.13 times more than the offered amount.

The green bonds have been assigned ‘AA+’ credit ratings by leading rating agencies CRISIL and CARE. The funds raised will be used for two major infrastructure projects:

• The Green Bridge Project in Nigdi Pradhikaran
• The Telco Road Development Project from Gawalimatha to Indrayani Nagar Chowk