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Green bonds to get another shot, govt plans to raise target

Hindustan Times Gurugram

|

April 03, 2025

India's green financing push could gain new momentum this financial year, with the government exploring a plan to increase its ₹25,342.31 crore target for issuing sovereign green bonds, two people said.

- Rhik Kundu

NEW DELHI: This suggests a turnaround in the government's thinking from a few months earlier, when it was considering a plan to fall back on conventional government securities and other debt instruments for green financing as green bonds have delivered only modest returns.

Green bonds, a type of fixed-income investment, are used to finance projects with positive environmental impacts.

The government's plan to increase its 2025-26 target for issuing sovereign green bonds will depend on India's so-called greenium, or green premium, landscape, the two people mentioned above said, speaking on condition of anonymity.

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