Green bonds drive mobility investments: Metro, rail projects get bulk of funds
Subscribe to enjoy similar stories. New Delhi: Mobility 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. A part 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’s objectives include de-dieselization of the farm sector, provision of water and energy security to farmers, increasing the income of farmers, and curbing environmental pollution.
Wind energy projects secured ₹2,983 crore and grid-connected solar schemes received ₹7,263 crore. The National Mission for a Green India, a part of the National Action Plan on Climate Change, received ₹350.67 crore for afforestation initiatives in the states.
"Mobility projects, particularly metro rail and energy-efficient railways, have received a large share of funding as part of the broader effort to cut emissions and enhance urban connectivity," the first person said on condition of anonymity. "Beyond transportation, channelling green bond proceeds into renewable energy and afforestation initiatives ensures a comprehensive approach to meeting India's net-zero goals." Sovereign green bonds, a fixed-income instrument designed
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