Ghaziabad’s advanced Tertiary Sewage Treatment Plant, a state-of-the-art facility designed to treat and reuse 40 MLD (million litres per day) of wastewater. The treated water is distributed via a 95-km pipeline network to over 1,400 industrial units across the city.
In a historic leap for sustainable urban governance, Ghaziabad Nagar Nigam (GNN) has achieved a national first—successfully issuing India’s first Certified Green Municipal Bond. Under the Swachh Bharat Mission–Urban, this groundbreaking initiative raised ₹150 crore for a transformative urban infrastructure project: a Tertiary Sewage Treatment Plant (TSTP) that sets new benchmarks in water reuse, environmental responsibility, and fiscal innovation.
This is not just an engineering milestone; it represents a paradigm shift in how Indian cities must approach urban sustainability—by aligning policy, finance, and climate action into a unified development framework.
The Policy Imperative: Why Green Bonds Matter for Indian Cities
Urban India faces a triple challenge—rapid population growth, strained civic infrastructure, and increasing climate vulnerability. Municipalities are often underfunded, with limited capacity to finance long-term infrastructure. The issuance of Green Municipal Bonds addresses this gap by offering a financially viable and environmentally sustainable instrument to fund critical urban services.
Green bonds link capital markets with climate-positive outcomes, encouraging investor participation in sustainable development. Ghaziabad’s success proves that even a Tier-2 city can build credibility in financial markets when backed by transparent governance, policy alignment, and measurable environmental goals.
Inside the Innovation: Tertiary Sewage Treatment Plant (TSTP)
At the heart of the green bond project is Ghaziabad’s advanced Tertiary Sewage Treatment Plant, a state-of-the-art facility designed to treat and reuse 40 MLD (million litres per day) of wastewater. It integrates Membrane Filtration Technologies—microfiltration, ultrafiltration, nanofiltration, and reverse osmosis—to purify sewage to industrial-grade standards.
This is not just high-end technology for its own sake. The treated water is distributed via a 95-km pipeline network to over 1,400 industrial units across the city. In doing so, the plant offsets freshwater consumption in manufacturing, reduces water stress, and closes the loop on municipal waste—turning a liability into an economic asset.
Policy Innovation: Blending Finance and Sustainability
What sets this project apart is its unique Public-Private Hybrid Annuity Model (PPP-HAM), which combines:
- 40% municipal funding
- 60% private sector participation
- A structured repayment mechanism over time, ensuring performance-based disbursements.
By leveraging this model, Ghaziabad minimized upfront costs, maintained operational oversight, and guaranteed service continuity. The ₹150 crore raised through the Certified Green Bond came with independent verification of environmental impact, attracting ESG-conscious investors and setting new standards for municipal financial governance.
Outcomes That Matter
- Water reuse at scale: Over 9.5 MLD of treated water contracted with 800+ firms.
- Reduction in groundwater extraction: Reduces pressure on aquifers and complies with National Water Policy goals.
- Recognition and replication: GNN was honoured with the Best Municipal Treated Water Reuse Award at the Water Digest World Water Awards 2024-25, gaining national visibility.
- International academic interest: A delegation from West Suffolk College, UK, visited Ghaziabad to study its sustainability model, signaling global knowledge exchange.
Broader Implications: A Blueprint for Urban India
Ghaziabad’s model is replicable. It provides a policy-ready template for other Urban Local Bodies (ULBs) aiming to:
- Decarbonize municipal services
- Diversify water supply sources
- Tap into green finance
- Improve governance and public accountability
This initiative aligns with India’s commitments under SDG 6 (Clean Water and Sanitation), SDG 11 (Sustainable Cities), and SDG 13 (Climate Action). It also dovetails with national efforts such as AMRUT 2.0, Jal Jeevan Mission–Urban, and the ClimateSmart Cities Alliance.
Viksit Bharat Starts at the Local Level
As India marches toward its vision of Viksit Bharat @2047, it is clear that sustainability must begin at the grassroots—within cities, wards, and municipalities. Ghaziabad’s pioneering Green Municipal Bond is a beacon for what’s possible when visionary leadership, policy innovation, and citizen-centric service delivery converge.
It is a timely reminder that climate action is not just a global agenda—it is a local governance priority. And Ghaziabad has shown that with the right mix of courage, collaboration, and competence, Indian cities can lead the green transition not just in theory, but in practice.
