Government Issued Sovereign Green Bonds Worth Rs 20,000 Crore In FY24 To Boost Renewable Energy Sector
(MENAFN- KNN India) New Delhi, May 6 (KNN) According to the latest CEEW Centre for energy Finance (CEEW-CEF) market Handbook, the government auctioned sovereign green bonds worth Rs 20,000 crore in FY24, marking a 25 per cent rise compared to Rs 16,000 crore issued in the previous fiscal year.
The sovereign green bond offerings in FY24 included tenures of 5 years, 10 years, and 30 years, with coupon rates ranging from 7.24 per cent to 7.37 per cent. All the green bond auctions were oversubscribed, indicating robust investor demand for these instruments.
"The proceeds from these bonds are deployed in public sector projects, focusing on sectors such as clean transportation, renewable energy, and sustainable water management," the CEEW-CEF handbook noted.
This funding will support India's efforts to reduce its carbon intensity and meet its commitments under the Nationally Determined Contributions (NDCs).
In addition to the government's efforts, foreign direct investment (FDI) flows towards the non-conventional energy sector surpassed USD 2 billion for the second consecutive year in FY24.
The renewable energy sector's share of total FDI inflows has been on an upswing, growing from 1.3 per cent in FY21 to 6.7 per cent in FY24.
The Reserve Bank of India (RBI) has also taken steps to facilitate wider participation in sovereign green bonds by permitting eligible foreign investors in the International Financial Services Centre (IFSC) to invest in these instruments.
As India continues its transition towards a more sustainable energy future, the government's green financing initiatives and the growing foreign investment in renewable energy projects are expected to play a pivotal role in achieving the country's climate goals.
(KNN Bureau)
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