Reserve Bank of India (RBI) Governor Shaktikanta Das said on Monday that a decision on government green bonds announced in the budget would be taken next month.
Finance Minister Nirmala Sitharaman had said in her budget speech that the government would issue bonds to raise resources for green infrastructure.
Das told reporters after the finance minister’s address to the RBI board that the monitoring group on cash and debt management will meet next month and plan to issue green bonds.
As per tradition, the Finance Minister addresses the Reserve Bank’s Board of Directors after the Budget.
“There are many such investors who have a separate fund to invest in green bonds. Keeping this in view, it was decided to introduce green bonds. That is, when you issue green bonds…it has a clear purpose and it is for a different purpose.”
This will widen the participation of international investors in the domestic bond market. This is because of the many funds that want to invest only in green infrastructure projects.
It has been indicated in the budget that green bonds will be part of the total debt for the next financial year.
The government has set a target of raising a record Rs 11.6 lakh crore from the market during the financial year 2022-23 to meet its expenditure requirements to boost the economy affected by the Kovid-19 pandemic.
On inclusion of government securities in global indices, he said, “It is in process. In the past, there was a system of complete access for investors to government bonds. In this, foreign investors had full access to certain government securities. We are moving in that direction. As far as inclusion in indices is concerned, it is in process.”