Gujarat Chief Minister Bhupendra Patel on Thursday rang the ceremonial bell at the National Stock Exchange in Mumbai to mark the listing of Surat Municipal Corporation’s ₹200 crore ($24 million) certified municipal green bond, a landmark initiative that drew eight times more investor interest than expected.
The green bond issue, India’s first internationally certified public green bond by a municipal body, received ₹800 crore in subscriptions, highlighting global confidence in India’s green finance market.
The funds will be used for solar power projects, water conservation and green mobility initiatives, according to officials.
Chief Minister Patel said the strong response showed investors’ growing enthusiasm for green growth. “Through this issue, citizens have become partners in sustainable development,” he said, in a statement.
Patel added that the state was aligning with Prime Minister Narendra Modi’s net-zero carbon target for 2070 by emphasizing green mobility and renewable energy.
Surat Sets Benchmark in Sustainable Urban Development
Surat, often called one of India’s cleanest and fastest-growing cities, has emerged as a model for green urban planning. Patel lauded the Surat Municipal Corporation for blending innovative urban design with citizen participation.
“For the first time, a municipal green bond with international certification has been launched in India,” he said. “This will serve as an inspiration for other cities.”
Mayor Daxesh Mavani said the initiative would accelerate Surat’s transition to sustainable energy. “Surat represents mini-India, where everyone has contributed to its growth,” he said, adding that the city had received 14 national awards for excellence.
Bond Structure and Allocation
SMC issued listed, taxable, redeemable, and secured non-convertible debentures worth ₹200 crore. The subscription opened on Oct. 6 and closed on Oct. 9, with allotments finalized through a draw system due to oversubscription.
The corporation reserved ₹30 crore — or 15 percent of the total issue — for retail investors, marking a push toward inclusive financing.
Municipal Commissioner Shalini Agarwal said the funds will be channeled toward green infrastructure. “These green bonds are a key resource for sustainable urban growth,” she said.
Balancing Ecology and Economy
Patel emphasized that under Modi’s leadership, India has achieved a strong balance between ecology and economy. He said Gujarat’s “Viksit Gujarat @2047” roadmap aligns with the national vision of “Viksit Bharat 2047,” promoting development through public participation and environmental stewardship.
He also noted that India’s G20 presidency had reinforced global attention on sustainable development with its message of “One Earth, One Family, One Future.”
Ashish Chauhan, managing director of the NSE, congratulated the Gujarat government and SMC on the successful listing. Senior government officials, including Chief Minister’s Secretary Vikrant Pandey and dignitaries from the finance ministry, attended the event.
Patel said Surat’s “Green People’s Financing” model would set an example for other Indian cities. “It will not only strengthen the local economy but also protect the environment,” he said.
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