Mumbai, May 19: The BMC is set to tap the capital market through Green Bonds to fund key sustainable infrastructure projects, including wastewater treatment and desalination plants, as part of its long-term environmental and urban resilience strategy.
As credit rating assessment is mandatory for issuing Green Bonds, the civic body has appointed India Ratings and Research Pvt Ltd to undertake the process. Municipal Commissioner Ashwini Bhide said the groundwork is progressing at a fast pace, with the Green Bonds expected to be floated by December.
BMC explores Green Bonds for major projects
The BMC, the richest civic corporation in the country, has traditionally funded all its big-ticket projects, such as the Mumbai Coastal Road constructed at a cost of Rs 14,000 crore and the Goregaon-Mulund Link Road at Rs 16,000 crore.
However, in the 2026-27 budget, then Municipal Commissioner Bhushan Gagrani highlighted that the Finance Minister had announced a Rs 100 crore incentive for a single Rs 1,000 crore municipal bond issuance in Budget 2026, alongside AMRUT 2.0 incentives.
The BMC is considering floating Green Bonds to fund projects such as sewage treatment plant projects, which are expected to cost the civic body over Rs 30,000 crore.
Desalination and Gargai projects highlighted
While speaking to the media, Bhide said, “The civic body is implementing several major environment-friendly infrastructure projects, including a 200 million litre desalination plant and the Gargai Dam project. As Green Bonds enable funding for sustainable and environmentally focused infrastructure, the BMC is planning to raise funds through such bonds for these large-scale projects in the coming years.”
Meanwhile, projects proposed under the Public-Private Partnership (PPP) model have come under criticism from elected representatives.
Addressing the concerns, Bhide clarified that adopting the PPP route does not mean handing over civic assets to private entities.
“The PPP model is widely used even by the Government of India for infrastructure development. However, this is a sensitive issue and there can be differing opinions. It would be appropriate for all stakeholders to come together, hold discussions and arrive at a balanced solution,” she said.
BMC plans new trench policy
To make Mumbai pothole-free, the BMC has undertaken large-scale road concretisation works across the city. However, repeated trenching by various authorities and utility companies for infrastructure works has led to the deterioration of several newly concretised roads.
In a bid to protect these roads and prevent damage to projects executed at huge public expense, the civic administration is set to introduce a new “Trench Policy” soon.
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“The policy will lay down detailed guidelines on who can undertake trenching, for what purposes, and to what extent such excavation will be permitted. It will also define the responsibilities of the concerned authorities and companies after excavation, along with penalties for damage caused to roads due to trenching activities,” said Bhide.
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