Asserting that the issuance of sovereign green bonds is part of the government’s overall borrowing programme, Economic Affairs Secretary Ajay Seth has said these rupee-denominated papers will have long residency to suit the necessity of green infrastructure projects.
Finance Minister Nirmala Sitharaman in her Budget Speech announced that the government proposes to give sovereign green bonds to mobilize resources for green infrastructure.
“The proceeds will be deployed in public sector projects which help in reducing the carbon intensity of the economy,” she said in the Budget 2022-23.
In a post-Budget meet with PTI, Seth said this is part of the overall borrowing for the following financial year.
“Now of time, we are checking out the domestic markets and rupee-denominated the residency would be
typical like any G-sec residency. It would be medium to long haul however not short term. Fund mobilized will be used in the infrastructure sector, which has a requirement of long-term finances,” Seth said.
Before taking a decision on quantum, Seth said the RBI will come out with a system, which will have details about projects or sectors that could meet all requirements for funding under the sovereign green bonds.