Do you think that the domestic green bond market is the key for the country’s energy transition? Comment (200 Words)
Refer - Financial Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 3 years
KEY POINTS
· India’s installed renewable energy (RE) capacity, excluding large hydro, recently crossed the 100 GW mark.
· This has happened in a year that saw Indian RE developers raise more capital in international bond markets than ever before.
· Green Bond markets can help developers access debt capital directly from its source instead of going through intermediaries like banks and NBFCs.
· Debt capital raised through bond markets is thus cheaper and typically carries relatively lenient covenants.
· Many institutional lenders are currently near RBI’s power sector lending limits, so refinancing debt from them through bond markets frees up capital from their books.
· Since 2014, Indian RE developers (including large hydro) have raised almost Rs 90,000 crore ($12.7 billion) through ‘green bonds’ in overseas markets.
· Green bond issuances in overseas markets are dominated by some of India’s largest developers (Greenko, ReNew Power, Azure Power, and Adani Green Energy).
· Despite the perceived risk of payment delays, developers have generated strong market interest by diversifying portfolios to include multiple utilities.
· INX offers a dedicated green bond listing category and saw its first exclusive developer green bond in 2021: a $585 million issuance from ReNew Power.
· In closing, overseas bond markets have been strong supporters of India’s energy transition.
Nivetha 3 years
please review
IAS Parliament 3 years
Good attempt. Try to bring coherence inthe answer. Keep Writing.
Manish 3 years
IAS Parliament 3 years
Good attempt. Keep Writing.
IAS Parliament 3 years
Avoid listing out points, explain them briefly. Keep Writing.
Sanaa 3 years
please review
IAS Parliament 3 years
Try to provide some specific examples. Keep Writing.
