Moneycontrol

Budget 2023Budget 2023

PARTNERS

  • Tata AIA Life Insurance
  • Hafele
  • Motilal Oswal
  • SMC Global Securities Limited
  • SBI Life
  • DSP Mutual Fund
Upcoming Event : LeapToUnicorn - mentoring, networking and fundraising for startups. Register now

Green bonds to be rupee-denominated with long tenure: DEA Secretary

Finance Minister Nirmala Sitharaman in her Budget Speech announced that the government proposes to issue sovereign green bonds to mobilise resources for green infrastructure.

February 06, 2022 / 06:11 PM IST
Representative image

Representative image

Asserting that the issuance of sovereign green bonds is part of the government's overall borrowing programme, Economic Affairs Secretary Ajay Seth has said these rupee-denominated papers will have long tenure to suit the requirement of green infrastructure projects.

Finance Minister Nirmala Sitharaman in her Budget Speech 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.

ALSO READ: Budget 2022: Green bonds will be issued to fund green infrastructure projects, says FM Sitharaman

In a post-Budget interview with PTI, Seth said this is part of the overall borrowing for the next financial year. "At this point of time, we are looking at the domestic markets and rupee-denominated…the tenure would be normal like any G-sec tenure. It would be medium to long term but not short term. Fund mobilised will be used in the infrastructure sector, which has a requirement of long term finances," Seth said.