Ghaziabad Nagar Nigam pioneers India's first certified Green Municipal Bonds | Current Affairs | Vision IAS
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Ghaziabad Nagar Nigam pioneers India's first certified Green Municipal Bonds

Posted 30 Apr 2025

1 min read

It was issued under the Swachh Bharat Mission-Urban, raising ₹150 crore for the development of a cutting-edge Tertiary Sewage Treatment Plant (TSTP).

  • TSTP ensures that treated water meets the highest standards, making it suitable for reuse in industrial processes.
  • The TSTP was developed under the Public-Private Hybrid Annuity Model (PPP-HAM), with 40% municipal funding.

Green Municipal Bond (GMB)

  • Municipal bonds refer to non-convertible debt securities issued by a municipal body or another entity that is established for such purposes and entrusted with functions under Article 243W of the Indian Constitution.
    • Green bonds are used to raise funds specifically for the climate mitigation, adaptation and other environment friendly and low carbon projects (World Bank).

Significance of GMB

  • Sustainable development: Investors are increasingly focused on integrating Environment, Social and Governance (ESG) factors into their investment processes.
  • Low cost, long term capital: They are cost-competitive with other bonds and can provide capital at a lower cost than commercial bank loans.
  • Broaden investor base: As existing traditional financing sources such as domestic bank loans are not sufficient to support capacity addition.
The below infographic gives challenges of Raising GMB.
  • Tags :
  • Swachh Bharat Mission-Urban
  • Municipal Bonds
  • Green Municipal Bond
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