NMC's green bonds secure CRISIL's 'AA+ stable' rating

NASHIK: The Nashik Municipal Corporation (NMC) has received an "AA+ stable" credit rating for its proposed green municipal bonds from CRISIL, paving the way for the civic body to raise funds for sewage management projects ahead of the 2026-28 Simhastha Kumbh Mela.The NMC standing committee had already approved the proposal to raise Rs200 crore via green bonds, but the rating was a prerequisite. "Now, CRISIL's 'AA+ stable' credit rating has paved the way for the Nashik Municipal Corporation to raise funds via green bonds," said NMC officials.The Rs200-crore funds will be used to lay a new sewerage network across the city. A proposal has already been sent to the state urban development department for approval. "With CRISIL's 'AA+ stable' credit rating for the green bonds, we are hopeful to get the UD's approval at the earliest," the officials added.Nashik will become the second civic body in Maharashtra, after Pimpri Chinchwad Municipal Corporation (PCMC), to raise funds through green municipal bonds. Like PCMC, NMC will also receive Rs26 crore in incentives from the Union housing and urban affairs ministry for utilising the instrument.CRISIL noted that NMC's financial health is strong, with an operating surplus of over Rs600 crore in FY25, supported by timely GST compensation, property tax, fees, and rental income. Revenue receipts rose 14% to Rs2,262 crore in FY25 from Rs1,985 crore in FY24. "Revenue surplus is expected to be healthy at over Rs600 crore per annum, driven by steady revenue receipts over the medium term. This is supported by an annual increase of 8% in the GST compensation from the state government," CRISIL stated in its report.The agency also pointed out that NMC has had nil debt as of March 31, 2025, with most capital expenditure funded from its revenue surplus. The civic body has lined up a Rs5,000-crore capital expenditure plan for the Kumbh Mela, to be financed through a mix of government grants, bond funding, and adequate liquidity.