Centre Lines Up ₹31,000 Crore Projects for Green Bond Funding in FY27

The Centre has identified projects worth close to ₹31,000 crore for funding mainly through sovereign green bonds in FY27. This is about 33% higher than the revised estimate for the current fiscal year, according to The Economic Times report. The increase comes as more projects are being brought under the green financing framework. 

The government will finalise the size of its green bond issuance for FY27 in March, when the borrowing programme for the new fiscal is decided. The project list is usually prepared in advance so that funds can be directed once the borrowing plan is approved. 

Railways to Receive the Largest Portion 

Railway projects account for the biggest share of the proposed funding. Around ₹15,000 crore worth of railway works have been lined up for financing through green bond proceeds in FY27. 

These include projects that fall within the eligible categories under the green bond framework, such as electrified rail infrastructure. 

Sharp Rise in Renewable Energy Funding 

Renewable energy projects are expected to receive about ₹11,700 crore in FY27. This is significantly higher than the roughly ₹2,500 crore allocated in the current fiscal year. 

The higher allocation reflects a larger set of clean energy projects being included in the green bond pipeline. 

Metro Projects and Tax Proposal 

Metro rail projects worth about ₹4,069 crore have also been identified for funding through green bonds in FY27. These projects are part of the approved list for sustainable transport. 

Read More: SEBI Proposes Easier Exit Rules For AIFs Stuck In Tax And Legal Disputes! 

Conclusion 

The FY27 pipeline points to higher allocations for railways, renewable energy, and metro projects, with sovereign green bonds expected to remain a primary funding source. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.