Finance Ministry finalises framework for sovereign green bonds

Mumbai: The Finance Ministry has finalised the framework to issue sovereign green bonds in line with global standards, according to sources.

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.

The framework is ready and it would be approved soon, the sources said.

These rupee-denominated papers will have long tenure to suit the requirement of green infrastructure projects, they added.

The issuance would be in line with the Budget announcement.

Finance Minister Nirmala Sitharaman in her Budget Speech this year 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," she said in the Budget 2022-23.

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.

Of this, it decided to borrow Rs.14.21 lakh crore during 2022-23, Rs.10,000 crore lower than the Budget estimate.

With inputs from PTI