Informist, Tuesday, Sep 13, 2022
NEW DELHI – The government is seeking second-party opinion on the framework for sovereign green bonds, and could include these bonds in the borrowing calendar for the second half of 2022-23 (Apr-Mar), which is expected by the end of September, Chief Economic Adviser V. Anantha Nageswaran said on the sidelines of an event today.
In the Budget for 2022-23 (Apr-Mar), the government had announced its intent to issue green bonds for the first time as part of its overall market borrowing.
In August, Informist had reported that the government had prepared a framework for issuance of green bonds and was currently seeking second-party opinion on the framework.
The government was yet to decide on the quantum and tenor of the green bonds, but might stick to a lower quantum for the first year, a senior finance ministry official had said in August. The quantum and tenor of the green bonds will be decided by September, before the Oct-Mar borrowing calendar is announced.
Finance Secretary T.V. Somanathan had told Informist in an interview that the green bonds would be issued only in the domestic market.
Green bonds are fixed-income instruments designed particularly to support climate-related projects.
At today's event, Nageswaran said the banking system and the corporate sector had completed their repair work. "Banking system is willing to lend, and the corporate sector is waiting to borrow or invest. It is just being held back because of the temporary uncertainties because of the war and the pandemic," he said.
The economic growth rate of 6% projected by national agencies was easily attainable, he said.
"I'm adding 0.5% (to 6% growth rate) coming from a capex boom and another 0.5% will come from digital infrastructure. If in some years, we have the global cycle also operating in our favour, then export growth will give additional icing on the cake and take it to 7.5% or 8%," he said.
Speaking on CPI inflation, which rose to 7.00% in August from a five-month low of 6.71% the previous month, Nageswaran said that more measures were needed to ensure food inflation came under control.
He, however, added that the food inflation of 7.62% in August would moderate once markets realise there are adequate stocks. Compared to other countries, India's inflation was still at a manageable rate, he said. End
Reported by Krity Ambey and Priyasmita Dutta
Edited by Avishek Dutta
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
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Informist, Tuesday, Sep 13, 2022
NEW DELHI – The government is seeking second-party opinion on the framework for sovereign green bonds, and could include these bonds in the borrowing calendar for the second half of 2022-23 (Apr-Mar), which is expected by the end of September, Chief Economic Adviser V. Anantha Nageswaran said on the sidelines of an event today.
In the Budget for 2022-23 (Apr-Mar), the government had announced its intent to issue green bonds for the first time as part of its overall market borrowing.
In August, Informist had reported that the government had prepared a framework for issuance of green bonds and was currently seeking second-party opinion on the framework.
The government was yet to decide on the quantum and tenor of the green bonds, but might stick to a lower quantum for the first year, a senior finance ministry official had said in August. The quantum and tenor of the green bonds will be decided by September, before the Oct-Mar borrowing calendar is announced.
Finance Secretary T.V. Somanathan had told Informist in an interview that the green bonds would be issued only in the domestic market.
Green bonds are fixed-income instruments designed particularly to support climate-related projects.
At today's event, Nageswaran said the banking system and the corporate sector had completed their repair work. "Banking system is willing to lend, and the corporate sector is waiting to borrow or invest. It is just being held back because of the temporary uncertainties because of the war and the pandemic," he said.
The economic growth rate of 6% projected by national agencies was easily attainable, he said.
"I'm adding 0.5% (to 6% growth rate) coming from a capex boom and another 0.5% will come from digital infrastructure. If in some years, we have the global cycle also operating in our favour, then export growth will give additional icing on the cake and take it to 7.5% or 8%," he said.
Speaking on CPI inflation, which rose to 7.00% in August from a five-month low of 6.71% the previous month, Nageswaran said that more measures were needed to ensure food inflation came under control.
He, however, added that the food inflation of 7.62% in August would moderate once markets realise there are adequate stocks. Compared to other countries, India's inflation was still at a manageable rate, he said. End
Reported by Krity Ambey and Priyasmita Dutta
Edited by Avishek Dutta
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2022. All rights reserved.
