NMC to Fund Sustainable water management Infrastructure for Sinhastha Kumbh Mela

Mumbai/Nashik : In a significant milestone for urban infrastructure financing, Nashik Municipal Corporation (NMC) today celebrated the successful listing of its ₹200 crore Green Municipal Bonds on the designated stock exchange i.e. National Stock Exchange of India. The issue marks Maharashtra’s first public issue of municipal bonds by an Urban Local Body (ULB) and reflects strong investor confidence in the city’s sustainable development agenda.

The bond listing ceremony for NMC’s second municipal bond issue was held in the presence of Shri Devendra Fadnavis, Chief Minister of Maharashtra.

The event was also attended by senior bureaucrats from the Government of Maharashtra, senior officials of Nashik Municipal Corporation, and dignitaries from the financial and civic ecosystem, who gathered to celebrate the achievement and congratulate the Mayor of Nashik,  Smt. Himgauri Aher, and the Commissioner of Nashik,  Smt. Manisha Khatri,  on the successful listing of NMC’s Green Municipal Bonds

The public issue of municipal bond witnessed strong investor participation and was oversubscribed more than five times, reflecting growing investor confidence in municipal financing as well as Nashik’s long-term growth potential.

 Proceeds from the Green Bond issue will primarily be deployed towards strengthening water infrastructure ahead of the upcoming Sinhastha Kumbh Mela, one of the largest religious gatherings in the world, scheduled to be hosted in Nashik and will also cater to the long term needs of the Nashik’s Citizen

The net proceeds from the issue will be utilized towards capital expenditure for the project “Augmentation of Mukane Water Supply Scheme”, including:

  • Construction of Water Treatment Plant (WTP)
  • Gravity Main pipeline from Vilholi to Gandhinagar
  • Water infrastructure for Sadhugram & Nilgiri Baug WTP in preparation for the Sinhastha Kumbh.

Speaking on the occasion, Devendra Fadnavis, Chief Minister of Maharashtra, said: “The successful listing of Nashik Municipal Corporation’s Green Bonds marks an important step in strengthening the financial autonomy of our urban local bodies. This initiative reflects Maharashtra’s commitment to innovative and sustainable financing solutions that will support world-class infrastructure for the upcoming Sinhastha Kumbh while also improving the quality of life for Nashik’s citizens.”

Shri Ashishkumar Chauhan, MD & CEO, NSE, remarked “I congratulate Hon’ble Chief Minister Shri Devendra Fadnavis Ji for his visionary leadership and Nashik Municipal Corporation on this landmark issuance of the first public Green Municipal Bonds from Maharashtra. Nashik Municipal Corporation has achieved a notable distinction by becoming the first municipal corporation to raise funds through both a private placement and a public issue in the same financial year, showcasing strong institutional capacity and financial readiness. NSE remains committed to supporting urban local bodies in tapping the capital markets and driving sustainable infrastructure development.”

Smt. Manisha Khatri, Commissioner, Nashik Municipal Corporation, said: “This successful bond listing is a proud moment for Nashik. The funds raised will be channelled towards sustainable and environmentally responsible infrastructure that will benefit both residents and the millions of devotees who will visit the city during the Sinhastha Kumbh.”

A K Capital Services Limited, the lead manager to the issue, played a key role in structuring and managing the bond offering.

Municipal bonds are increasingly gaining traction in India as cities explore market-based financing mechanisms to support infrastructure development. Nashik’s successful Green Bond issuance reinforces growing investor confidence in well-governed urban bodies and highlights the potential of municipal bonds as a sustainable financing instrument for Indian cities.

This second municipal bond listing by Nashik within the same financial year, along with the optimization of various central incentives such as those from the Ministry of Housing and Urban Affairs and the Urban Challenge Fund—which make such borrowings highly cost-effective—marks another strategic step in Nashik’s journey toward building resilient, sustainable, and future-ready urban infrastructure ahead of the globally significant Sinhastha Kumbh Mela. It also stands as a strong example of well-thought-out financial planning by the Nashik Municipal Corporation in leveraging capital markets and government incentives to support long-term urban development.

Additionally, Nashik Municipal Corporation has become the only Urban Local Body in India to have issued municipal bonds through both private placement and public issue modes within the same financial year, further demonstrating the corporation’s proactive and innovative approach to capital market financing for urban infrastructure.