Government may finalise green bonds framework by next week

The government could finalise the framework of the green bonds by next week, government officials told CNBC-TV18. The Centre had expressed its plan to develop green bonds in Budget 2022 to fund green projects.

The green bonds framework will contain only the principles of financing, and they won't be limited to infrastructure but will cover agriculture and social sectors as well.

The officials said that the project pipeline for green bonds would be reviewed in three to six months.

The panel on green bonds is headed by the Chief Economic Advisor (CEA) V Anantha Nageswaran and comprises the Finance Minister and NITI Aayog officials.

The Reserve Bank of India (RBI) will later decide the tranche and issuances of green bonds.

The government has pegged borrowing for the second half of this calendar year via green bonds at Rs 16,000 crore.

The official said that a class of investors is channelising funds for the green projects. "The room to make green finance is more viable, and the government should take the lead," the official said, adding it is meaningful to pick funds at a slightly lower cost.