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- Similar to other developing economies, India has also embraced the use of sovereign green bonds to finance its shift toward a low-carbon economy, but demand from investors has been sluggish.
- Overview of Sovereign Green Bonds (SGrBs):
- Sovereign Green Bonds are debt instruments issued by a national government with the goal of funding projects that offer positive environmental outcomes.
- The funds raised through these bonds are strictly allocated to initiatives that support sustainability, such as renewable energy, sustainable agriculture, waste management, and more.
- In essence, these bonds allow governments to raise funds while advancing environmental goals.
- Sovereign Green Bonds in India:
- The Indian Union Budget for 2022-23 included the announcement of sovereign green bond issuances.
- The government released a framework for these bonds on November 9, 2022.
- So, what does this framework entail?
- The framework aligns with the guidelines established by the International Capital Market Association (ICMA) for issuing green bonds, and includes four key components:
- Use of Proceeds
- Project Evaluation and Selection
- Management of Proceeds
- Reporting
- The government specified that proceeds from the green bonds would fund projects that:
- Promote energy efficiency
- Help reduce carbon emissions and greenhouse gases
- Foster climate resilience and adaptation
- Contribute to the preservation of natural ecosystems and biodiversity, in line with sustainable development goals
- Eligible projects include investments in solar, wind, biomass, hydro energy, urban mass transit systems like metro rails, green buildings, and pollution prevention/control.
- Projects related to fossil fuels, nuclear energy, and direct waste incineration are excluded from funding.
- The framework restricts eligible spending to government expenses incurred no more than 12 months before the bonds are issued.
- The allocated proceeds must be spent within 24 months of the bond issuance.
- If a green project is delayed or canceled, the funds will be redirected to another eligible project.
- The framework aligns with the guidelines established by the International Capital Market Association (ICMA) for issuing green bonds, and includes four key components:
- Project Evaluation and Reporting:
- To ensure transparency and accountability, the Ministry of Finance has set up a Green Finance Working Committee, which is led by the Chief Economic Advisor and includes relevant ministries.
- This committee will evaluate submitted projects at least twice a year.
- Once approved, the final list will be sent to the finance ministry’s budget division, which will oversee bond issuance through the Reserve Bank of India (RBI) and allocate proceeds to the chosen projects.
- The government will publish an annual report detailing the selection of green projects, how funds are utilized, and the progress of India’s greening efforts.
- Additionally, a Green Register will be maintained, documenting the bond issuance, proceeds raised, how funds are allocated, and the status of eligible projects.
- India and the United States recently revealed plans to collaborate on new procurements and co-production agreements for Javelin anti-tank guided missiles to fulfill India’s defense needs.
- About Javelin Anti-Tank Guided Missile:
- The Javelin is a man-portable, fire-and-forget anti-tank guided missile.
- It is developed and manufactured in partnership by major U.S. defense companies Raytheon and Lockheed Martin.
- Designed to neutralize heavily armored vehicles, including main battle tanks, as well as lighter military vehicles, the missile is a versatile weapon.
- It is also effective against a variety of other targets, such as fortifications, bunkers, and even helicopters.
- Features:
- Effective Range: The Javelin has an operational range of up to 2.5 km.
- Guidance System: It operates as a fire-and-forget missile with lock-on before launch and automatic self-guidance, utilizing infrared guidance.
- Tactical Advantage: Once launched, the user can take cover immediately, as the missile is capable of guiding itself to the target.
- Warhead and Targeting: The Javelin is equipped with a HEAT (High Explosive Anti-Tank) warhead, which is capable of penetrating modern tank armor by attacking from above, where the armor is thinnest (top-attack mode). The missile is also effective in a direct attack flight against fortifications.
- Environmentalists have expressed concern over the growing pollution levels in the Souparnika River, which flows near the Kollur Mookambika Temple.
- About Souparnika River:
- The Souparnika River is a west-flowing river located in Karnataka.
- It flows through the scenic, lush forests of the Western Ghats, a UNESCO World Heritage Site.
- Course: Originating from the Kodachadri Hills in the Western Ghats, the river winds through the Byndoor taluk, passing by the famous Mookambika Temple in Kollur, before ultimately merging with the Arabian Sea.
- The Souparnika River holds significant importance in Hindu mythology.
- According to legend, Garuda, the divine bird and mount of Lord Vishnu, meditated on its banks, which led to the river being named "Souparnika," derived from "Suparna," another name for Garuda.
- A unique and striking feature of the Souparnika River is its path near Maravanthe Beach, where it flows parallel to the Arabian Sea, separated by only a narrow stretch of land.
- This rare geographical formation creates a stunning and photogenic landscape, making it a popular destination for tourists and photographers alike.