SBI Chairman Dinesh Khara on Saturday, Tuesday, said there is a need to mobilise domestic as well as international flows from retail and institutional investors in order to meet the green finance needs.
Khara was speaking at a 'climate finance and risk' event in New Delhi. He also stressed on how important climate-focused frameworks that were backed by central regulations was.
“There is a need to mobilise domestic and international flows from retail as well as institutional investors to meet the green finance needs; and robust climate focused frameworks backed by central regulations," he said.
The Reserve Bank of India's latest Aoril 2023 data for sectoral deployment shows that bank credit to renewable energy projects, which is part of th elarger green finance segment, increased 28 percent to Rs 4,614 crore in March this year from Rs 3,607 crore in the same month a year-ago, Moneycontrol reported.
This is after credit to the sector increased by 94 percent between March 2021 and the same month in 2022, with the bank credit rising to Rs 3,607 crore from the previous Rs 1853 crore.
The Finance Minister, in
this year's Union Budget, announced Rs 35,000 crore for priority capital investment towards energy transition and net zero objectives and energy security by the ministry of petroleum and natural gas. Later, she clarified that the money allotted to energy security and transition is
not a subsidy, which is being given indirectly. "There are two objectives of allocating this money: To make a transition from fossil fuel to renewable energy and to make sure that our strategic reserves are all filled up adequately," she had said.
