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Agra Nagar Nigam to Raise Rs50 Crore via Municipal Bonds for Solar Project

Continuing the trend of municipal corporations issuing bonds to finance green energy projects, Agra Nagar Nigam has proposed a Rs50 crore municipal bond issue to partially fund a 7.5 MW solar project. The bond issue, filed with SEBI for private placement, includes 1,250 redeemable, non-convertible municipal bonds, each valued at Rs400,000.

The solar project, combining ground-mounted and rooftop installations, is estimated to cost Rs36.35 crore. The municipal corporation will part-fund it with Rs7.35 crore from internal resources, while Rs29 crore will come from the bond proceeds. The project will offset rising electricity costs and contribute to Agra’s Solar City Mission.

The rooftop solar installations (750 kW each) and ground-mounted projects (2 MW and 4 MW) will generate 2 million units annually, saving Rs1.4 crore in energy costs. Excess rooftop power will be fed into the grid under a net-billing mechanism, and captive use agreements will be signed with Uttar Pradesh Power Corporation.

Several Indian municipal corporations are raising funds for green initiatives. In 2023, Indore Municipal Corporation raised Rs303 crore in green bonds, while Vadodara Municipal Corporation raised Rs100 crore. The PM Surya Ghar: Muft Bijli Yojana has also allocated Rs1,000 crore to support urban bodies in promoting residential rooftop solar adoption.