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BFSI Chronicle, 11 Edition September 2022
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Incidentally, in a recent interaction with Business markets and rupee-denominated...the tenure would
Today, Vedanta Group CEO Sunil Duggal had listed be normal like any G-sec tenure. It would be medium
green bonds as one of the immediate steps required to long term but not short term. Fund mobilised
for achieving net-zero status. He had said that India will be used in the infrastructure sector, which has a
needed to create a policy and institutional structure requirement of long term finances,” Seth said.
to facilitate the rise of green finance as there are
promising signs in the green bond market. Before taking a decision on quantum, Seth said the
RBI will come out with a framework, which will have
“Significant focus on sustainability and green details about projects or sectors that would qualify
energy. Individuals can look forward to additional for funding under the sovereign green bonds.
avenues of investment with Sovereign Green
Bonds to mobilise funds for green infrastructure,” Besides, he said the guidelines will have details
said Tapati Ghose, Partner, Deloitte India. related to the monitoring of fund usage in green
In a similar context, Ashish Gumashta, CEO, Julius or less carbon-emitting areas and assurances for
Baer India said that the focus on clean energy is very investors.
much visible in the budget and issuance of green
bonds, among other things, is a great move to attract “This is not a general-purpose borrowing. These are
global investors. going to be purpose-oriented borrowing. We will
come out with a framework in the coming months.
Green Bonds To Be Rupee-Denominated With It’s not a one year instrument but there will be more
Long Tenure need for such an investment, and more eagerness of
The RBI will come out with a framework, which will the investors in the area in the coming years,” he said.
have details about projects or sectors that would
qualify for funding under the sovereign green bonds. During 2022-23, the government plans to borrow a
record Rs 11.6 lakh crore from the market to meet its
Asserting that the issuance of sovereign green expenditure requirement to prop up the economy hit
bonds is part of the government’s overall borrowing by the Covid-19 pandemic.
programme, Economic Affairs Secretary Ajay Seth has
said these rupee-denominated papers will have long Seth, however, assured that the government will
tenure to suit the requirement of green infrastructure execute the market borrowing programme in the next
projects. financial year in a non-disruptive manner without
crowding out the private sector.
Finance Minister Nirmala Sitharaman in her Budget
Speech announced that the government proposes to This is nearly Rs 2 lakh crore higher than the current
issue sovereign green bonds to mobilise resources year’s Budget estimate of Rs 9.7 lakh crore.
for green infrastructure.
Even the gross borrowing for the next financial year
“The proceeds will be deployed in public sector will be the highest-ever at Rs 14,95,000 crore as against
projects which help in reducing the carbon intensity Rs 12,05,500 crore Budget Estimate (BE) for 2021-22.
of the economy,” she said in the Budget 2022-23.
However, the gross borrowing has been revised
In a post-Budget interview with PTI, Seth said this downwards by nearly Rs 2 lakh crore to Rs 10,46,500
is part of the overall borrowing for the next financial crore for the current financial year helped by an
year. improvement in revenues.

“At this point of time, we are looking at the domestic Gross borrowing includes repayment of past loans.

The Institute Of Cost Accountants Of India

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