New Delhi: The Finance Ministry said that it has finalised the framework to issue sovereign green bonds in line with global standards. "The government intends to mobilise Rs 16,000 crore from the issuance of green bonds during the second half of the current financial year. It is a part of the borrowing programme for the second half of this fiscal," said the ministry in a statement. "The framework is ready and it would be approved soon. These rupee-denominated papers will have long tenure to suit the requirement of green infrastructure projects. The issuance would be in line with the Budget announcement," it added.
Finance Minister Nirmala Sitharaman in her Budget Speech in February had announced that the government proposes to issue sovereign green bonds to mobilise resources for green infrastructure. "The proceeds will be deployed in public sector projects, which help in reducing the carbon intensity of the economy," said Sitharaman.
The government is planning a total borrowing of Rs 5.92 lakh crore during the October-March period of the current fiscal. The government had in the Budget for 2022-23 projected a gross market borrowing of Rs 14.31 lakh crore. Out of this, it decided to borrow Rs 14.21 lakh crore during 2022-23 which is Rs 10,000 crore lower than the budget estimate.