Local bodies going green through climate bonds in Madhya Pradesh

The Bhopal Municipal Corporation and other local bodies in Madhya Pradesh, like the Indore civic body, are planning to tap green bonds as part of the state government’s increased emphasis on renewable energy.

During the recently concluded Global Investors Summit (GIS), the state received investment intentions totaling over Rs 15 trillion, with renewable energy topping the chart with proposals worth Rs 6.09 trillion. 

“This (local bodies going for green bonds) is not a standalone activity. We are continuously evaluating and trying multiple ways to tap the markets for funds. We are not investing as much money but are still getting the developments (in the field of green transition) to happen,” Principal Secretary (energy and renewable energy department) Sanjay Dubey told Business Standard. 

The Indore Municipal Corporation has filed an offer document for the public issuance of rated and listed green municipal bonds aggregating up to Rs 244 crore. The civic body, declared the cleanest city in India for a sixth consecutive year, will use the fund to set up a 60-megawatt (Mw) solar plant at Jalud water pumping station, about 80 kms from the city.  

The Bhopal Municipal Corporation, on the other hand, plans to utilise the fund for solar and wind energy plants, water supply, and sewerage projects in the Neemuch district. 

“Apart from Indore and Bhopal, other civic bodies and panchayats will also go for such fundraising activities,” Dubey said. 

Around 200 panchayats have decided to install solar energy panels, the secretary said. “The whole transition is being done in different modes. While some works are done in private-developer mode, some are taking the engineering, procurement, and construction route. Some panchayats are using mining funds. All of this is happening simultaneously.”  

The Madhya Pradesh Cabinet has given a go-ahead to 63,000-Mw capacity of pumped hydro storage. “Now, we can move on to the investment proposals that came up during the GIS,” Dubey said. 

The state is also installing three floating solar power plants in different reservoirs with a total investment of Rs 7,500 crore. These projects will be in addition to the 600 Mw floating solar power plant in the Omkareshwar dam area of the Khandwa district.