CII moots new institution for green funding

Says it would help address India’s widening green investment deficit

- SAKET KUMAR

The Confederation of Indian Industry (CII) has asked the Centre to set up a dedicated green finance institution (GFI) in the upcoming Union Budget.

This, it said, would help address India’s widening green investment deficit, estimated at nearly $1 trillion over the next 10-15 years and about $10 trillion by 2070.

Current green finance flows meet only a fourth of this requirement, the industry body said in a statement.

CII said the proposed institution should be structured as an intermediary rather than a balance sheet lender. It should be seeded by multilateral development banks, sovereign funds and philanthropies, involving no direct fiscal outgo. It has recommended setting up the GFI in GIFT City to leverage regulatory flexibility and attract global capital.