Green bonds fuel mobility: Metro, rail get major share

Sovereign green bonds were first issued in FY23 by India, which aims to be 'net zero' by 2070

- Rhik Kundu

Rail projects emerged as the largest recipients of proceeds from India's sovereign green bonds since their introduction in FY23, with the government prioritizing sustainable transportation to advance its net-zero emission ambitions, two people familiar with the matter told Mint. Of almost ₹58,000 crore to be raised from FY23 to FY25, about ₹14,330 crore has been allocated for metro rail projects nationwide, while the railway ministry is to receive ₹31,070 crore to boost the production of energy-efficient electric locomotives, the people said.

Some of the proceeds went to renewable energy initiatives. The PM Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM) scheme, a flagship programme of the ministry of new and renewable energy, was granted ₹3,763 crore. The ministry aims to cut the use of diesel in farms, provide water and energy security to farmers, increase the income of farmers, and curb environmental pollution.