Jalud Solar Plant: India's first Green Bond-funded 60 MW project inaugurated in MP
Synopsis
India's first citizen-funded solar plant is now live — and it's a blueprint worth watching. Madhya Pradesh's 60 MW Jalud facility, built for ₹271 crore through public Green Bonds, lets ordinary citizens earn 8% annually from clean energy. With Indore Municipal Corporation as the first urban body to raise funds this way — drawing investors from 28 states — this is less a local project and more a national model.
Key Takeaways
The Jalud Solar Power Plant (60 MW, ₹271 crore ) in Khargone, Madhya Pradesh was inaugurated on 29 April 2025 .
It is India's first solar project funded through a public Green Bond Scheme , with citizens able to buy up to 10 bonds at ₹1 lakh each.
Bondholders earn an annual return of approximately 8% over 20 years ; project cost expected to be recovered within 10 years .
Indore Municipal Corporation became the first urban local body in India to raise funds via Green Bonds, drawing contributors from 28 states .
The plant will supply electricity to the Indore Municipal Corporation and help reduce carbon emissions in the region.
Prime Minister Narendra Modi had performed the ground-breaking ceremony for the plant in 2023 .
Madhya Pradesh inaugurated the Jalud Solar Power Plant in Khargone district on 29 April, marking what officials described as a historic milestone in India's renewable energy journey. Built at a cost of ₹271 crore, the 60 megawatt facility is the country's first solar project established through public participation under the Green Bond Scheme. The plant, located near Maheshwar, will supply electricity to the Indore Municipal Corporation while reducing carbon emissions.
What the Green Bond Model Means
Unlike conventional infrastructure financing, the Jalud project was funded through bonds sold directly to citizens. Chief Minister Mohan Yadav explained that individuals can purchase up to 10 bonds, each worth ₹1 lakh, earning an annual return of approximately 8 per cent over a 20-year period. He added that the project's cost is expected to be recovered within a decade, with the subsequent ten years generating net profit for bondholders.
Point of View
And an 8% annual return over 20 years is attractive on paper. However, the model's credibility depends on transparent bond governance, timely coupon payments, and independent audits of plant performance. India has a mixed record on municipal bond programmes; Indore's track record as a well-governed city gives this a better-than-average shot. If the returns hold and the documentation is clean, this could become a template for green urban finance — but that requires the Centre and SEBI to actively standardise the framework, not just celebrate the first mover.
NationPress
1 May 2026
Frequently Asked Questions
What is the Jalud Solar Power Plant and why is it significant?
The Jalud Solar Power Plant is a 60 MW solar facility in Khargone district, Madhya Pradesh, inaugurated on 29 April 2025. It is India's first solar project funded through a public Green Bond Scheme, allowing ordinary citizens to invest directly in green energy infrastructure.
How does the Green Bond Scheme work for citizens?
Citizens can purchase up to 10 bonds, each priced at ₹1 lakh, under the Green Bond Scheme. The bonds offer an annual return of approximately 8% over a 20-year tenure, with the project cost expected to be recovered within the first decade.
Who will benefit from the electricity generated at Jalud?
The plant will supply electricity to the Indore Municipal Corporation, which is the first urban local body in India to raise funds through Green Bonds. The project also aims to reduce carbon emissions in the region.
Which states contributed to the Green Bond funding?
According to Indore Mayor Pushyamitra Bhargav, citizens from 28 states across India contributed to the Green Bond funding, making it a national participation model for sustainable development.
What is the role of the central government in this project?
Prime Minister Narendra Modi performed the ground-breaking ceremony for the Jalud plant in 2023, signalling central government support. Chief Minister Mohan Yadav cited this as evidence of the Union government's backing for Madhya Pradesh's green energy initiatives.
