INDORE: Indore Municipal Corporation (IMC) is contemplating on releasing Green Masala Bonds to raise funds for a mega solar power plant project mooted to reduce its monthly power consumption.
The corporation aims to raise Rs450 crore through rupee denominated bonds or Masala Bonds for the project. A high-level meeting was also held in Bhopal on Monday to finalize a decision.
IMC commissioner Asheesh Singh told TOI, “The Green Masala Bonds will be listed on London Stock Exchange (LSE).” On being asked about why Masala Bond, the commissioner said that currency denomination of Masala Bonds is in Indian Rupee. “So the currency risk would be of bond investors, not ours,” he said, adding that IMC would probably be the first civic body in the country to release Green Masala Bonds.
Singh said that they are already in talks with LSE officials for requirement for listing of bonds such as rating, guarantor, finalization of balance sheet etc.
“It would purely be a revenue model which would help us reduce our electricity consumption with minimum financial burden,” he said.
IMC pays a bill of Rs10-15 crore per month.
The commissioner said that a minimum of Rs450 crore would be required for setting up a 100 megawatt plant. “We have adequate space for installation of plant at Jalood, or else we can go for Yeshwant Sagar with floating solar plant system,” he said.
“Though the cost of floating solar system would be a bit high, it would have various other benefits such as high productivity and also save evaporation loss of the water body,” he said.
“The plant would work on net metering system wherein produced energy would directly go to grid and be adjusted in final billing,” he said, adding that special permission also have to be obtained from the government as net-metering is allowed for solar power plants of up to 2 megawatt capacity.