The government has identified projects worth ₹ 25,000 crore which will be financed by proceeds from sovereign green bonds issued in the current fiscal and the next as a part of green funding push.
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The government of India has recognized projects worth ₹ 25,000 crore to be financed by proceeds from sovereign green bonds issued in the current fiscal and the next as part of its green funding push, as informed by the officials.
These projects are identified for green financing and largely comprise of renewable energy and clean transportation segments.
According to a government official, ”These funds are being raised for a very specific purpose, so it will be utilized strictly in stipulated green projects”. Additionally, more green projects are expected to be identified for funding later.
The government has set up a green finance working panel headed by chief economic advisor V Anantha Nageswaran which is mandated to finalize projects from the proposals submitted by various government departments.
Earlier, the government announced plans to raise ₹ 16,000 crore through green bonds in two equal tranches in the current fiscal. In January, the first tranche drew a robust response, with orders exceeding the offer size of ₹ 8,000 crore by more than four times.
According to the framework approved by finance minister Nirmala Sitharaman, the sovereign green bonds will focus on financing public projects across nine areas including renewable energy, climate change, clean transportation, sustainable water and waste management, and pollution control.
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