Nashik Municipal Corporation Lists ₹200 Crore Clean Godavari Bonds on NSE

Nashik Municipal Corporation (NMC) successfully listed its ₹200 crore Clean Godavari Bonds 2030 on the National Stock Exchange (NSE) in Mumbai on Tuesday. The privately placed issue, offered at a coupon rate of 7.8%, was oversubscribed 3.95 times, signalling strong investor confidence in municipal financing.

This marks a significant milestone for Nashik, making it the third city after Pune and Pimpri Chinchwad to tap the bond market for urban infrastructure funding. The listing reflects growing interest in municipal bonds as a viable tool for financing large-scale civic projects.

Bond Issue Details

The ₹200 crore bond issue carries a coupon rate of 7.8% and a maturity period until 2030, offering investors a stable return over the long term. Oversubscription by nearly four times highlights the strong appetite for municipal bonds among institutional investors.

In recognition of this achievement, the Union Ministry of Housing and Urban Affairs will award NMC an incentive of ₹26 crore. Additionally, the civic body could receive up to ₹68.7 crore under the Urban Challenge Fund scheme if it meets eligibility criteria.

Purpose and Project Allocation

Funds raised through the bond issue will be directed toward critical infrastructure projects along the Godavari river. Key initiatives include constructing a sewerage network on riverbanks, building a cable-stayed Ram Jhula pedestrian bridge, and completing the second phase of the Ram Kal Path project.

These projects aim to rejuvenate the river and improve civic amenities ahead of the Simhastha Kumbh Mela in 2027. The planned works are expected to enhance Nashik’s urban landscape and environmental sustainability.

Government and Industry Response

The bell-ringing ceremony was attended by Maharashtra Chief Minister Devendra Fadnavis, who stressed the importance of clean river initiatives and city development before the Kumbh Mela. Ashish Kumar Chauhan, MD and CEO of NSE, praised NMC for executing one of the fastest municipal bond issuances, setting a benchmark for other urban local bodies.

NMC Commissioner Manisha Khatri highlighted the corporation’s commitment to completing projects on time using bond proceeds. Senior officials, including the state chief secretary and Kumbh Mela Authority representatives, also attended the event, underscoring its significance.

Read More: NSE Revises Lot Sizes for Index Derivatives.

Conclusion

Nashik’s successful municipal bond listing marks a major step in leveraging market-based financing for urban development. The oversubscription reflects investor confidence in municipal governance and infrastructure projects.

With planned investments in river rejuvenation and civic upgrades, Nashik is poised for a significant transformation ahead of the Simhastha Kumbh Mela 2027. This move sets a precedent for other cities to explore innovative funding mechanisms for sustainable urban growth.

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