Surat, Oct 13 (NationPress) The inaugural green bond from Gujarat, issued by the Surat Municipal Corporation (SMC), is set to debut on the National Stock Exchange (NSE) on October 16, as announced by the state government on Monday.

This initiative resonates with Prime Minister Narendra Modi’s objective of achieving net-zero emissions by 2070, according to Shalini Agarwal, the Municipal Commissioner of SMC.

“These green municipal bonds were made available for subscription from October 6 to 9. The total issue size was Rs 200 crore, and it experienced an oversubscription of eight times,” Agarwal informed IANS.

As per the Municipal Commissioner, the central government has rolled out various reforms aimed at promoting innovative municipal financing, including green bonds, to aid environmentally sustainable urban projects.

“This marks the first green bond in the country to be issued with an international certificate,” Agarwal added. “The funds raised will be directed towards green projects in Surat, such as solar and wind energy plants, solid waste management, water supply initiatives, and the establishment of electric vehicle charging infrastructure for public use.”

The bond listing event on October 16 will be presided over by Gujarat Chief Minister Bhupendra Patel.

Recently, Union Environment, Forest and Climate Change Minister Bhupendra Yadav noted that India would require over $10 trillion by 2070 to achieve its net-zero ambitions.

He indicated that the government is advocating a blended finance strategy—utilizing public funds to attract and mitigate risks for private investments in renewable energy, energy efficiency, electric mobility, waste management, and nature-based solutions.

Yadav emphasized that green financing must cultivate an economic framework where development is fundamentally interconnected with ecological sustainability and community welfare.

Green bonds are a type of fixed-income instrument designed to fund projects with a positive environmental or climate impact, such as energy efficiency, clean transportation, renewable energy, and sustainable water management.

Despite the funds being exclusively allocated for these “green” endeavors, they share similarities with conventional bonds. They are issued by the issuer alongside corporations, governments, or multilateral banks, just like other types of bonds.