Tamil Nadu Chief Minister M.K. Stalin, on May 26, inaugurated the listing ceremony of the Greater Chennai Corporation’s (GCC) ₹200 crore municipal bonds on the National Stock Exchange (NSE) at Kalaivanar Arangam by ceremonially ringing the bell.
This marks a significant step in Tamil Nadu’s modern urban infrastructure financing. The GCC raised ₹200 crores for a 10-year term at an impressive 7.97% interest—the lowest for any municipal bond issued in India this year.
Investor confidence was strong, with ₹421 crores in bids—4.21 times the base size—via NSE’s electronic platform. The raised funds will support the Integrated Stormwater Drain (ISWD) system in the Kosasthalaiyar river basin, covering 8 large lakes and 71 smaller water bodies. Of the 46 project packages, 30 are complete, and the rest are ongoing. The system will increase water storage, mitigate monsoon flooding, and aid summer water management.
The bonds received ‘AA+’ ratings from India Ratings and Acuite Ratings. The Tamil Nadu government supported the issuance through the Project Sustainability Grant Fund (PSGF) and the Centre has approved a ₹26 crore incentive under AMRUT 2.0, further lowering costs.
The event was attended by Minister for Municipal Administration, K.N. Nehru; Minister for Hindu Religious and Charitable Endowments and CMDA Chairman, P.K. Sekar Babu; Greater Chennai Corporation Mayor, R. Priya; MLA M.K. Mohan; Deputy Mayor M. Maheshkumar; Chief Secretary N. Muruganandam, IAS; NSE Chief Economic Advisor Dr. Tirthankar Patnaik; Principal Secretary, Finance Department, T. Udhayachandran, IAS; Principal Secretary, Municipal Administration and Water Supply Department, Dr. T. Karthikeyan, IAS; Commissioner, Greater Chennai Corporation, J. Kumaragurubaran, IAS; along with investors, stockbrokers, local body representatives, and senior government officials.
Overview of the Integrated Storm Water Drainage Project (ISWDP) – Kosasthalaiyar Basin
The Integrated Storm Water Drainage Project (ISWDP) in Chennai’s Kosasthalaiyar Basin is a vital urban infrastructure initiative undertaken by the Greater Chennai Corporation (GCC) to combat urban flooding and climate-induced vulnerabilities. The Kosasthalaiyar Basin, one of four major basins in Chennai, spans 3,757 sq.km and frequently experiences severe flooding alongside the Cooum, Adyar, Kovalam basins, and the Buckingham Canal.
The ISWDP, with an estimated cost of ₹3,059 crores, aims to construct a 652 km stormwater drainage network, including 532 km of new drains. Existing drains (225 km) will be partially retained (105 km) or rehabilitated (120 km). The drains are designed to channel stormwater into the Kosasthalaiyar River and link with 8 major lakes and 71 minor water bodies to improve rainwater storage and groundwater recharge.
Additional upgrades include 11 km of channel improvements, 23,000 catch pits, two pumping stations, and four disaster relief camps to boost resilience. The project is being executed in three phases across 46 contract packages.
