Nashik: In preparation for the upcoming Simhastha Kumbh Mela 2027, the Nashik Municipal Corporation (NMC) has announced the launch of a ₹200 crore Green Bond to fund major water supply infrastructure projects. The announcement was made jointly by Mayor Himagauri Aher-Adke and Municipal Commissioner Manisha Khatri at a press conference on Monday.
Under the issue, 20 lakh bonds with a face value of ₹1,000 each will be available for public subscription from Wednesday, February 25, and the issue will close on March 2. This marks the first public green bond issuance by the civic body, allowing individual investors to directly participate.
Fundraising for Simhastha 2027
To mobilise funds for essential infrastructure development ahead of Simhastha Kumbh Mela, NMC is adopting a mix of self-funding and debt instruments. Previously, the corporation had raised ₹200 crore through municipal bonds to strengthen the city’s sewerage network. The newly announced green bond will specifically finance water supply projects.
The issue has received final approval from the Securities and Exchange Board of India (SEBI).
Key Feature of the Green Bond
Total Issue Size: ₹100 crore (extendable up to ₹200 crore in case of oversubscription)
Face Value: ₹1,000 per bond
Coupon Rate: 8.05% (paid half-yearly)
Effective Annual Yield: 8.20%
Rating: AA+ by India Ratings & Research and CRISIL
Mode: Demat form only
Allotment: First-come, first-served basis
Listing: NSE and BSE
Lead Manager: AK Capital Services Limited
Projects to be funded
The proceeds from the green bond will be utilised for environmentally sustainable water infrastructure projects, including:
Mukne Dam Direct Pipeline Scheme (Phase 2)
Water Treatment Plant at Vilholi
Vilholi to Gandhinagar Direct Water Supply
Sadhugram to Nilgiri Bagh Water Treatment Plant
These initiatives qualify as “Green Projects” under the Green Debt Securities Guidelines.
Incentive Grants
Commissioner Manisha Khatri stated that NMC is eligible for an incentive grant of ₹20 crore for issuing municipal bonds. Additionally, under the AMRUT 2.0 scheme of the Union Ministry of Housing and Urban Development, the corporation may receive up to ₹20 crore more as an incentive for issuing green bonds.
With this initiative, Nashik aims to strengthen its water infrastructure in an environmentally responsible manner while preparing the city for the massive influx of devotees expected during Simhastha 2027.
