Surat, Oct 13 : Gujarat's first green bond, issued by the Surat Municipal Corporation (SMC), will be listed on the National Stock Exchange (NSE) on October 16, the state government announced on Monday.

The initiative aligns with Prime Minister Narendra Modi's vision of achieving net-zero emissions by 2070, said Shalini Agarwal, Municipal Commissioner of SMC.

'These green municipal bonds were open for subscription between October 6 and 9. The issue size was Rs 200 crore, and it was oversubscribed eight times,' Agarwal told IANS.

According to the Municipal Commissioner, the central government has introduced several reforms to encourage innovative municipal financing, including green bonds, to support environmentally sustainable urban projects.

'This is the country's first green bond to be issued with an international certificate,' Agarwal added. 'The proceeds from these bonds will be utilised for green projects in Surat, including solar and wind power plants, solid waste and water supply projects, and the establishment of electric vehicle charging infrastructure for public use.'

The bond listing ceremony on October 16 will be chaired by Gujarat Chief Minister Bhupendra Patel.

Last month, Union Environment, Forest and Climate Change Minister, Bhupendra Yadav, highlighted that India would require more than $10 trillion by 2070 to meet its net-zero goal.

He said the government is promoting a blended finance approach'leveraging public funds to attract and de-risk private investments in renewable energy, energy efficiency, electric mobility, waste management, and nature-based solutions.

Yadav emphasised that green financing should foster an economic model where development is intrinsically linked to ecological sustainability and community well-being.

Green bonds are a kind of fixed-income instrument that is used to finance initiatives that have a positive impact on the environment or the climate, like energy efficiency, clean transportation, renewable energy, and sustainable water management.

Though the money raised is solely used for these "green" projects, they resemble conventional bonds. They are issued by the issuer and corporations, governments, or multilateral banks, just like other bonds

/IANS