The Indore Municipal Corporation (IMC) has become the first civic body in India to launch an IPO (Initial Public Offering), and the IMC’s ‘green bond’ oversubscribed by 5.42 times on its opening yesterday, garnering Rs 661.52 crore.
According to state government officials, the green bond has been issued so that the IMC is able to acquire funds for setting up a 60 MW captive solar power plant worth about Rs 244 crore on about 100 acres of land.
Presently, the IMC is using conventional electricity to operate pumps to bring drinking water from Narmada River to Indore city, about 80 km away. The IMC spends about Rs 300 crore annually to operate these pumps, which pull the Narmada water from village Jalud in neighbouring Khargone district.
Once the solar power plant becomes operational, the civic body will not only save a huge amount of money in the water-drawing process but also will contribute immensely towards creating a greener and sustainable environment.
Tenders for the proposed solar plant have been floated and, once finalized, the power plant is expected to become operational in the next two years, said officials. The solar plant would be located in the Khargone district.
Indore city has already set a record of becoming the cleanest city in India for six years in a row, ever since the Government of India launched the ‘Cleanliness Survey’ awards.
Madhya Pradesh Chief Minister Shivraj Singh Chouhan congratulated the IMC and people of Indore city for the novel initiative. Chouhan expressed happiness that the IMC became the first urban body to launch a public issue through its ‘green bond’ and it received overwhelming response from investors and people who oversubscribed by more than five times.
The green bond’s base price was expected to be Rs 122 crore but it received a very good response from people and oversubscribed 5.42 times earning Rs 661.52 crore. The public issue is scheduled to close on Tuesday