The Nashik Municipal Corporation (NMC) achieved a significant financial milestone this week by successfully listing its Rs 200 crore Clean Godavari Bonds 2030 on the National Stock Exchange (NSE) in Mumbai. The bond issue, which carries a coupon rate of 7.8%, witnessed overwhelming investor confidence, getting oversubscribed by an impressive 3.95 times.
A Landmark for Urban Infrastructure Financing
With this move, Nashik has etched its name as the third city in Maharashtra, after Pune and Pimpri Chinchwad, to access the bond market for funding crucial urban infrastructure projects. This successful foray into municipal bonds has earned the civic body a Rs 26 crore incentive from the Union Ministry of Housing and Urban Affairs. Furthermore, the NMC stands to gain an additional Rs 68.7 crore, equivalent to 25% of the total project cost, under the Urban Challenge Fund scheme, subject to qualification.
Focus on Kumbh Mela 2027 and River Rejuvenation
The bell-ringing ceremony at the NSE was graced by Maharashtra Chief Minister Devendra Fadnavis. He highlighted the critical role this funding will play in Nashik's development, particularly in preparation for the upcoming Simhastha Kumbh Mela in 2027. "Our commitment is to ensure that the Godavari river is clean and rejuvenated before the Kumbh Mela in 2027. Nashik city and Trimbakeshwar will undergo a complete facelift with significant civic works planned in view of the mega event," Fadnavis stated.
He connected the initiative to Prime Minister Narendra Modi's vision of 'Vikas Bhi, Virasat Bhi'—development while preserving heritage—and the emphasis on municipal bonds to bolster the financial autonomy of urban local bodies. The Chief Minister expressed optimism, noting that nearly 15 other municipal corporations in Maharashtra could follow Nashik's lead by adopting similar disciplined and sustainable financing models. "I am hopeful that other state government institutions will soon get listed on NSE," he added.
Setting a Benchmark and Project Allocation
Ashish Kumar Chauhan, MD and CEO of the NSE, commended the Nashik Municipal Corporation for executing one of the fastest municipal bond issuance processes, setting a new benchmark for other urban local bodies across the country. NMC Commissioner Manisha Khatri outlined how the bond proceeds will be utilized. The funds are earmarked for key projects including:
- Constructing a comprehensive sewerage network along the banks of the Godavari river.
- Building a new cable-stayed Ram Jhula pedestrian bridge.
- Completing the second phase of the Ram Kal Path project.
All these projects are targeted for completion ahead of the Simhastha Kumbh Mela. The ceremony was also attended by senior officials including State Chief Secretary Rajesh Agrawal, MITRA CEO Praveen Pardeshi, Nashik Divisional Commissioner Pravin Gedam, and Kumbh Mela Authority Commissioner Shekhar Singh.
