According to people familiar with the matter, Finance Ministry has finalised the framework for issuing sovereign green bonds that meet global standards.

The government intends to raise Rs 16,000 crore through green bond issuance in the second half of the financial year. This is part of a borrowing plan for the second half of this fiscal.

The framework is ready and will be approved soon, they said. These rupee-denominated documents will have a long deadline to meet requirements for green infrastructure projects, they added. This release will coincide with the budget announcement.

Finance Minister Nirmala Sitharaman announced in this year’s budget speech that the government is proposing to issue sovereign green bonds to raise resources for green infrastructure.

“Proceeds will go towards public sector projects that will help reduce the carbon intensity of the economy,” she said in the 2022-23 budget.

The government plans to borrow a total of Rs 5.92 lakh crore in the October-March period of the current financial year. The government in its 2022-23 budget projected total market borrowing at Rs 14.31 lakh crore. Of this, it decided to borrow Rs 14.21 lakh crore in 2022-23, which is Rs 10,000 crore lower than budget estimates.