Surat: Now a resident can participate in green initiatives of Surat Municipal Corporation (SMC) by investing as small as Rs 1,000 in Green Municipal Bond. Earlier, SMC had approved a Green Debt Security bond in February 2024. It was approved to issue the bond in which private financial institutions were eligible for investment. However, for a lower rate of interest and to allow people to participate, a public issue is being introduced. SMC is targeting to collect Rs 200 crore through the bond. The funds will be spent on various renewable energy and water conservation projects. SMC will be allowing investors from across the country to invest. “In green debt security, we would have to pay a higher rate of interest to private financial institutions. While in public issue, we will be able to decide the rate of interest and it will be lower,” said an SMC official. Earlier, Ahmedabad and Vadodara civic bodies had issued Green Municipal Bond through private placement. The rate of interest was 7.90%. SMC is aiming to issue the bonds at an interest rate lower than this. The initiative also aims to spread awareness about green development projects. Investors will earn interest by investing in environmental improvement initiatives. “We will be first in the state to issue such a bond according to the July 2023 guidelines of SEBI,’’ an official said. The process to issue the bonds will require SMC to meet various requirements of SEBI and officials claim that meeting the eligibility for issuing a bond will add to the civic body’s trustworthiness and public image. “Investors can invest in a minimum of Rs 1,000 (face value) bond. Thanks to the image of SMC, we can attract many investors. Due to liquidity, it will be easy for investors to exit,” an official said. The move aims to make SMC self-sustaining against its dependency on government grants. As part of improving its financial stability, the civic body is focusing on collection of taxes and charges. However, taxes and charges are not revised every year and that impacts the revenue of SMC.
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