Indore (Madhya Pradesh): Two charitable trusts of the city have undertaken a unique initiative for the development of the city. These trusts will invest in the green bonds issued by Indore Municipal Corporation following the collector Dr Ilayaraja T’s approval and under the conditions duly prescribed by the registrar public trust, Juni Indore.
The trusts are Murlidhar Kishan Gopal Parmarthik Trust and Ramanuja Kot Trust.
As per the permission issued to the applicants separately, Section-13 of the Madhya Pradesh Public Trust Act, 1951 “Appropriation of Public Trust Funds” except the amount required for the day-to-day expenditure of the trust, all the amounts related to the public trust should be deposited in the scheduled bank or post office, savings account. Bank, or any bank registered under the Co-operative Societies Act, 1912 (2 of 1912) or with any banker or person acting as a banker with the approval of the registrar, in whose safe custody and security of repayment of the amount so deposited on demand provided that the registrar may, by general or special order, allow the trustees of any public trust or class of such public trust to appropriate the money in any other manner.
The green bonds, issued by the IMC, are “public issues” and rated AA+ by India Ratings, similarly rated AA by CARE rating. It may be noted that IMC had proposed to set up a 60-MW captive solar plant in Jalud with the money collected under public issue of the IMC’s Green Bonds.
However, as per the prescribed conditions, the applicants (both the Trusts) will be able to invest in green bonds only after the consensus of the present trustees and the passing of the settlement proposal. The income and profit received from investment from the bonds will be used solely for the fulfillment of the objectives of the trust. It is specially mentioned in the order of the collector that it will be specially kept in mind that only that much amount should be invested in the bonds, so that the day-to-day expenditure of the trust and the fulfillment of the objectives are not adversely affected. It will be mandatory to mention the income and profit received from investment in bonds in the audit report annually. Accounts related to the trust will have to be compulsorily submitted to the registrar’s office. On violation of the conditions, the permission will automatically be considered cancelled.
