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The Indore Municipal Corporation (IMC) has commissioned a 60 MW solar power plant in Khargone district, funded through a public green bond issuance of INR 244 crore, marking a first for a renewable energy project in India. The plant, developed at a total cost of INR 271.16 crore, is spread across 211 acres and is expected to generate 9.60 crore units of electricity annually. The project is aimed at reducing the civic body’s electricity expenditure, particularly for water supply operations, while lowering carbon emissions by an estimated 1.46 lakh tonnes each year. The initiative reflects increasing adoption of sustainable financing mechanisms in urban infrastructure projects.
The Indore Municipal Corporation (IMC) has commissioned a 60 MW solar power plant in Khargone district in the past week, with the project funded through green bonds issued via a public offering. The initiative, inaugurated by Madhya Pradesh Chief Minister Mohan Yadav, marks the first instance of a renewable energy project in the country being financed through such a model. Advertisement
The solar plant has been developed at a total cost of INR 271.16 crore, with IMC raising INR 244 crore through green bonds. Spread across 211 acres of largely barren land, the project has been designed to support the civic body’s energy requirements, particularly for water supply operations linked to the Narmada river.
IMC currently incurs electricity expenses of around INR 25 crore per month to pump water from Jalud in Khargone district, located approximately 80 km from Indore. The solar power plant is expected to reduce this expenditure by about INR 5 crore per month, providing operational cost savings over the long term.
The plant is projected to generate approximately 9.60 crore units of electricity annually. Officials indicated that the cost of power from the solar facility is estimated at INR 3.50 per unit, compared to grid electricity tariffs ranging between INR 6 and INR 9 per unit, highlighting a cost advantage for the civic body.
In addition to financial savings, the project is expected to contribute to environmental objectives. The solar installation is estimated to reduce carbon dioxide emissions by approximately 1.46 lakh tonnes annually. It is also expected to generate over INR 18 crore in revenue through carbon credits.
According to officials, the project has been structured as a public participation model, enabling investors to contribute to urban infrastructure through green financing instruments. The use of green bonds reflects a growing trend among municipal bodies to explore alternative funding mechanisms for sustainability-focused projects.
The commissioning of the plant is expected to support IMC’s efforts to manage operational costs while integrating renewable energy into urban service delivery. It also highlights the role of municipal-level initiatives in advancing clean energy adoption and reducing dependence on conventional power sources.
Source - PTI
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