Indore Municipal Corporation (IMC) has launched its first 60 MW solar power plant in Madhya Pradesh, which is being described as one of India's first renewable energy projects funded through green bonds.The plant has been inaugurated by the state's chief minister, Mohan Yadav, and it aims to lower expenses on electricity and carbon emissions related to municipal operations.

The plant is located in the Khargone district and has been set up for an estimated amount of ₹271 crore. Of this, ₹244 crore has been raised through an offer of green bonds to the public. The government officials have referred to this arrangement as 'citizen-financed' infrastructure, where investors can be linked to clean energy initiatives.

The solar power plant would provide electricity for the purpose of lifting water from the Narmada River and transporting it to Indore. This process costs the municipality about ₹25 crore per month, but officials have stated that the new plant would help cut this cost to around ₹5 crore monthly.

The energy cost per unit is expected to be ₹3.50 as against the existing price range of ₹6 to ₹9 per unit in the traditional electricity supply networks. Furthermore, this project is expected to produce about 9.6 crore units of energy per year, which will aid the essential services of the municipality at relatively low prices.

Apart from cost savings, the initiative is expected to cut carbon dioxide emissions by approximately 1.46 lakh tons every year. According to officials, the initiative is emission-free and can generate an extra income of ₹18 crore through carbon credits.

Situated on approximately 211 acres of mostly wasteland, the project aims to serve as a replicable model for urban administrations looking for innovative ways of financing such initiatives. The authorities also stated that similar projects using green bonds could help cities lessen their dependency on traditional power sources for services.

This development marks a step taken by the municipalities in India to find innovative solutions to finance their energy requirements. This initiative highlights the emerging trend of integrating renewable sources of energy into municipal service provision and financing.