Surat: India’s cleanest city’s local self government, The Surat Municipal Corporation (SMC) is set to achieve a major milestone in Gujarat’s financial history by launching the state’s first municipal green bond.The subscription dates for the public offering have been officially announced by Surat Municipal Commissioner Shalini Agrawal.
The SMC is issuing a Green Bond amounting ₹200 crore. The subscription window will open on October 6th and close on October 10th, allowing a five-day period for investment. Commissioner Agrawal said that investors from across the entire country, and not just Surat, will be able to subscribe during this period.
A New Era for Municipal Finance:
This launch is a significant step in the history of Indian municipal finance, as it represents a municipal corporation entering the stock market through this type of green bonds.
The bond is the unprecedented opportunity for retail investors to subscribe directly to a municipal green bond in Gujarat. This revolutionary step empowers citizens to become direct partners in their city’s environmental development.
The SMC is obtaining funding directly from the public market for the first time, rather than depending on banks or the private sector. This approach provides a powerful model for the diversification of financial resources for public bodies.
Where Funds Will Be Used:
Commissioner Agrawal stated that the ₹200 crore raised from the Green Bond will be used only for environmental projects.
The core projects identified for funding include initiatives related to renewable energy, specifically solar and wind power. Additionally, the capital will support incentives important for water conservation and sustainable usage, such as the reuse and recycling of treated water.
Beyond local funding, the SMC’s action establishes a new path for other municipal corporations in Gujarat. Gaziabad was the country’s first municipal corporation to launch green bond in April 2025. throughout the country to raise capital while maintaining both environmental and financial responsibility.
