Nashik Municipal Corporation to Issue Rs200 Crore Green Bonds for Water Infrastructure

The Nashik Municipal Corporation (NMC) is all set to issue Rs200 crore worth of green bonds, which will be listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on Wednesday. This significant move aims to increase the city's water treatment capacity by an additional 274 million litres per day (MLD) to meet the demands of the upcoming Simhastha Kumbh Mela and future drinking water requirements.

This announcement was made by Municipal Commissioner Manisha Khatri, Mayor Himgauri Aher, and Deputy Mayor Vilas Shinde during a press conference on Monday. The green bonds will carry a coupon rate of 8.05% per annum and an effective yield of 8.2% per annum, catering to institutional, non-institutional, and retail individual investors.

The NMC has a history of raising funds through municipal bonds. In November last year, they raised Rs200 crore for various infrastructure projects ahead of the Kumbh Mela. Now, they are preparing to raise another Rs200 crore through green bonds. The corporation will also receive incentives of Rs26 crore from the Central Government for issuing the green bonds, along with additional funds through urban challenge funds.

Khatri emphasized the importance of the project, stating that the corporation intends to enhance water treatment capacity to cater to the increased demand expected during the Simhastha Kumbh Mela, as well as the city's future needs. The project includes laying a new water distribution pipeline from Vilholi on the outskirts of Nashik city to Sadhugram in Tapovan. This new infrastructure will help reduce current water leakages from 45% to 20%.

Mayor Aher, speaking to the Times of India, highlighted the significance of this moment for the civic body. 'The green bonds will help raise funds for projects aimed at augmenting water treatment capacity ahead of the Kumbh Mela,' she said. The Water Treatment Plant (WTP) project financed through the green bonds will meet the additional 250 MLD water requirement during the religious congregation.

The project involves increasing the pumping station capacity at the Mukane dam, constructing a new water treatment plant at Vilholi, and laying new water distribution pipelines from the Vilholi WTP to Sadhugram and the Nilgiri water treatment plant in the Panchavati area of Nashik. Currently, the daily water requirement for the entire Nashik city is over 550 MLD. During the upcoming Kumbh Mela, the demand is expected to rise by an additional 240 MLD.

This initiative underscores the NMC's commitment to sustainable development and ensuring that the city's water infrastructure can meet the growing needs of its residents and visitors.