Projects worth Rs. 31,000 crore (US$ 3.44 billion) to be funded mainly via green bonds in FY27
- IBEF
- February 6, 2026
The Government of India has shortlisted projects worth close to Rs. 31,000 crore (US$ 3.44 billion) to be mainly funded through the proceeds of green bonds in the FY27, which is an increase of about one-third from the revised estimates in the current fiscal year. This move indicates a greater emphasis on green financing as the Centre readies its borrowing plan for the next fiscal year, with the size of the final green bond issuance to be determined in March when the borrowing plan is finalized. Green financing has been increasingly factored into the government’s plan to support environmentally positive investments and lower carbon emissions. A senior finance ministry official explained that the green bond funds will help increase investments in areas that are in line with the climate commitments and environmental policy priorities of India.
Among the major allocations, new and renewable energy projects worth Rs. 11,700 crore (US$ 1.30 billion) have been shortlisted for green bond funding in FY27, which is more than four times the allocation in the current fiscal year. The Indian Railways is the most prominent sector with projects worth Rs. 15,000 crore (US$ 1.67 billion) shortlisted for green bond funding, while metro rail projects with a total value of Rs. 4,069 crore (US$ 452.11 million) have also been shortlisted for funding through green bonds. Since the sovereign green bond program was launched in FY23, the government has raised significant funds to develop the green financing market in India and support the transition to a low-carbon, climate-resilient economy.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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