Bhopal Municipal Corporation Seeks 90 Crore Loan to Set Up Solar, Wind Power Project in Neemuch


Bhopal Municipal Corporation (BMC), is looking for a loan of Rs 90 crore to finance a solar and wind project in Neemuch, which is 425 km from the capital.


The council voted to withdraw the agenda item on January 21 after it was aware of opposition from 85 BMC corporators.


BMC issued an expression of interest (EoI), three days later, for a long-term loan of Rs 90 cr for the installation of 20 MW solar in Phase- I and in Phase II – 20 MW Solar and 15 MW of wind energy projects. A 1 MW rooftop project is also included. After causing a stir, Malti Rai, the mayor of BMC, pulled the plan.


Sources indicate that most corporators are unaware of the marginal cost of funds-based lending rate, (MCLR), being used by the BMC.


KVS Choudary, BMC commissioner, said that the current move is an EoI. “The contribution of BMC to the projects is estimated at Rs 86 crore. One solar project is currently underway. It was approved by BMC administrator.” BMC has been under administrator for three years, when an elected council was absent. In August 2022, a new council was elected. September 2022 was the deadline for submitting bids for Neemuch’s project. The tender’s four main documents are not publicly available.

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The BMC has welcomed the green initiative and it also earns valuable points in the ‘Swachh Survey.

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