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Solar, wind, green irrigation pumps and metro rail projects worth Rs 19,858 crore would be beneficiaries of India’s maiden Sovereign Green Fund. The fund is expected to be built on the proceeds of India’s maiden sovereign green bonds, which was announced in the last Budget.
Sovereign Green Bonds were the ‘green highlight’ of the last Budget. In order to tap investor interest in the growing green energy space, the finance minister last year had announced the first ever issuance of sovereign Green Bonds, mobilising resources for green infrastructure.
And now, a year later, the RBI has issued an auction of two green bonds with tenures of 5 and 10 years, worth Rs 4,000 crore each. The proceeds from the issuance were expected to be deployed in public sector projects that help reduce the carbon intensity of the economy, The FM had said in last year’s Budget speech. Another tranche of a similar amount is likely to be launched this month.
The Centre is looking to raise Rs 16,000 crore this fiscal through the green bonds. The Budget, however, has not issued any clarity on whether the bond issuance will be the only contributor to the green fund or if the Centre will seek more sources.
The Ministry of Railways, interestingly, has received the highest disbursement under the green fund, totalling Rs 12,479 crore, for two crucial metro train projects in Kolkata, West Bengal.
The Ministry of new and renewable energy has received Rs 5,214 crore for grid connected solar and wind power projects. It has also been granted Rs 1,996 crore for the Centre’s flagship scheme on green irrigation KUSUM. Green India Mission of the environment ministry has received Rs 169 crore.
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