NEW DELHI: The government is planning to raise nearly Rs 16,000 crore via sovereign green bonds in the current fiscal against the budget provision of Rs 24,000 crore, a top official told this newspaper. The amount raised through green bonds would be the same as last year, said the official.
Currently, it is reviewing the utilisation of funds raised through sovereign green bonds in FY23, depending upon which the call regarding the quantum of green bonds to be issued will be taken, said the official.
“In September, we will announce the borrowing calendar for the second half of the current financial year.
The committee under the chief economic advisor will decide upon the quantum of funds to be raised by sovereign green bonds,” the official said. He further stated that the Centre wants more foreign investors as subscribers to the sovereign green bonds as they have been pushing the agenda of a green economy for India.
When asked if the Centre is planning to give any tax benefits to foreign investors to buy green bonds, the official said India will not give any tax benefits on green bonds. “Foreign investors want India to move faster towards a green economy, so we have this window for them. They want the world to become green,” the official stated.
As per the expenditure profile document of the Union Budget 2023, the centre has made a provision of Rs 23,764.64 crore for borrowing via sovereign green bonds in FY24. Last year, it raised Rs 16,000 crore through these bonds. Most of the funds will be deployed in railway projects, schemes related to renewable energy, electrification of public transport, organic farming, environment and climate change among others.
Green bonds are issued to raise funds for environment-friendly projects. In addition, the official said India would be able to meet its fiscal deficit target for the current fiscal in view of consistent tax and non-tax revenue collection. He also added that the government won’t go beyond the expenditure decided for the current financial year. Meanwhile, on the country’s high level debt as flagged by global agencies like Moody’s the official said that India’s foreign debt level is less than 5% of the total debt, so that is not a matter of concern.