Power ministry proposes tax-paid green bonds issuance, says report
India’s federal power ministry has proposed allowing some power financing companies to issue tax-paid green bonds to raise cheaper finance for lending to clean projects, three government sources said on Wednesday.
Power Finance Corp (PFC), REC Ltd, and Indian Renewable Energy Development Agency (IREDA) could raise funds through tax-paid bonds – where the issuer pays for it instead of the investor, typically getting higher returns on investment – three officials who did not want to be named as discussions were private, said.
India is looking to increase the pool of investors to achieve 500 gigawatts of non-fossil fuel energy by 2030 and become a zero carbon emitting nation by 2070.
