Business Standard

Govt draws up plans to address concerns of green bond investors

A government official aware of the developments said the treatment for such bonds had to be different from that for the money raised through various types of cess

Green bonds

Unlike taxes, in the case of green bonds, it will be borrowing and the money borrowed so far has never been carved out

Subhomoy Bhattacharjee New Delhi
The government is working out means to convince investors in green bonds that the money they put in will not be used for anything else.
“The decision is difficult and it is a work in progress,” said a top official in the Reserve Bank of India (RBI).
While the government runs committed funds like those from cess on taxes and the non-lapsable pool for the Northeastern states, there is no precedent for this as regards borrowing.
Sequestering the borrowing for green bonds has become a key demand from global investors. Those who have reached out to the

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First Published: Sep 25 2022 | 10:47 PM IST

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