New Delhi: By asserting that the issuance of Sovereign Green Bonds is part of the overall government loan program, Economic Affairs Secretary Ajay Seth has said this Rupee denomination paper will have a long working period to meet the needs of green infrastructure projects.
Finance Minister Nirmala Sitharaman in his budget speech announced that the government proposed to issue sovereign green bonds to mobilize resources for green infrastructure.
“Results, the results will be deployed in public sector projects that help reduce the intensity of economic carbon,” he said in a budget of 2022-23.
In post-budget interviews with PTI, Seth said this was part of the overall loan for the next financial year.
“At this point of time, we see the domestic market and denomination of rupees …
Tenurial will be normal as the G-second work period.
It will be the medium term to long term but not short-term.
Car funds will be used in the infrastructure sector, which has requirements Long-term finance, “Seth said.
Before making a decision about Quantum, Seth said the RBI will come out with a framework, which will have details about the project or sector that will be eligible for funding under sovereignty green bonds.
In addition, he said this guideline would have details relating to monitoring the use of funds in the green area or less emitting carbon and guarantees for investors.
“This is not a general purpose loan.
This will be a goal-oriented loan.
We will come out with a framework in the coming months.
This is not a one-year instrument but there will be more needs for such investments, and.
Very desire investors in the area In the coming years, “he said.
During 2022-23, the government plans to borrow a record of Rs 11.6 lakh crore from the market to meet its expenditure needs to sustain the economy engulfed by Covid-19 pandemic.
Seth, however, ensure that the government will conduct market loan programs in the next financial year in a non-intrusive way without packing the private sector.
It was almost Rs 2 Lakh Crore higher than the estimated year budget RS 9.7 lakh crore.
Even gross loans for the next financial year will be the highest at Rs 14.95,000 Crore by opposing the estimated budget of Rs 12.05,500 Crore (BE) for 2021-22.
However, a dirty loan has been revised downward by almost Rs 2 Lakh Crore to Rs 10,46,500 Crore for the financial year today assisted by increased income.
Gross loans include past loan payments.
The government collects money from the market to fund a fiscal deficit through the date securities and treasury bills.