IMC's Megastructure: A 100 MW Solar Plant in Jalud worth Rs.400 Crore.
Indore Municipal Corporation (IMC) is planning on releasing Green Masala Bonds to raise funds for a MEGA SOLAR POWER PLANT project at Jalud providing electricity for Water Treatment Plant, propose to reduce its monthly power consumption. The corporation aims to raise Rs 400 Cr. through rupee-denominated bonds or Masala Bonds for the project.
The Corporation has to spend about Rs. 17 crores on the water lift and distributing water every month at Jalud Water Treatment Plant.
The corporation has to bear the electricity bill of more than 200 Cr. annually. With the introduction of a solar plant, the cost will be reduced to half and after saving the money to investors, the corporation will save about Rs. 1 Cr. per month and 12 Cr. every year. Green Energy will be produced from Solar Plant Establishment. 2 million carbon credits will be available on 100 MW plant. The price of a carbon credit is one dollar. So accordingly, the corporation will be able to sell 2 million carbon credits in the market.
According to IMC Officials, The Green Masala Bonds will be listed on the London Stock Exchange (LSE). The currency denomination of Masala Bonds is in Indian Rupee. So the currency risk would be of bond investors, not IMC’s, adding that IMC would probably be the first civic body in the country to release Green Masala Bonds. IMC is already in talks with LSE officials for the requirement for the listing of bonds such as rating, guarantor, finalization of balance sheet, etc.
IMC pays a bill of Rs 10-15 Cr. per month. The commissioner said that a minimum of Rs 400 Cr. would be required for setting up a 100-megawatt plant. IMC has adequate space for the installation of a solar plant at Jalud. The plant would work on a net metering system wherein produced energy would directly go to grid and be adjusted in the final billing.
