GREEN FINANCE IN INDIA

Green financing is to increase level of financial flows (from banking, micro-

credit, insurance and investment) from the public, private and not-for-profit
sectors to sustainable development priorities or projects that adopt the aspect
of climate change.

WHY IS GREEN FINANCING IMPORTANT?

The advantages of green banks include offering better credit conditions for
clean energy projects, the ability to aggregate small projects, creation of
innovative financial products and others.

CHALLENGES
Without addressing the challenges like absence of common definition of green
finance and lack of international standards, insufficient correlation of targets of
sustainable growth the financial gap between the needs of green economy and
currently available investment opportunities cant get fufliled. It requires strong
support both at the national and global levels to solve these problems.
Although the solar energy projects received Rs 54,000 crore, India's total
green financing goals still fall short, with only 1/4th of the financing target
achieved, says the climate think tank Climate Policy Initiative.

FUTURISTIC INSIGHTS
Green finance could become a bright and robust strand of the growing India-
US economic relations in the next 25 years, India's envoy here has said.This
development is going to require massive funding in the upcoming 10-25 years.
Prime Minister Narendra Modi has asked financial institutions to come up
with innovative and futuristic financing and risk management ideas to fund
the emerging needs of the economy, PTI reported. Stating that
implementation of green financing is the 'need of the hour' to meet the net-
zero carbon emissions target by 2070, Mr Modi said financial help should be
extended to environment-friendly projects.

REFERENCES
https://www.oneindia.com/india/pm-modi-stresses-on-need-for-green-
financing-3380503.html
https://www.researchgate.net/publication/320475794_Challenges_to_green_f
inance_in_G20_countries#
https://rbidocs.rbi.org.in/rdocs/Bulletin/PDFs/04AR_2101202185D9B6905ADD
465CB7DD280B88266F77.PDF
POWER GRID CORPORATION OF INDIA LTD
ABOUT
Power Grid Corporation of India Limited is a Maharatna CPSU and India’s largest electric
power transmission company. GoI holds a 51.34% stake in the company as on March 31,
2021. PGCIL was incorporated in 1989 to set up extra-high voltage alternating current and
high-voltage direct current (HVDC) transmission lines.

BUSINESS
1. Construction of Transmission line (440 kV, 765 kV, 1200 kV).
• 172,192 km Transmission Line • 264 Sub-Station • >99 % System Availability
2. Construction of Sub-Stations.
3. Providing Telecom services to Business Customers.
 Owns and operates 72,126 km of Telecom Network
 Points of Presence in 458 locations & Points of Interconnections in 780 locations
4. Providing consultancy services to various national and international customers.

GROWTH OUTLOOK
Strong operating efficiency has helped surpass operational benchmarks set by CERC - system
availability was 99.76% in FY21 (vs 99.82% in FY20)

Strategic importance to the government: The company plays a vital role in the development
of India’s power sector, owning 85% of the interstate transmission network and carrying 45%
of the power generated in India.

EV charging infrastructure: Company is promoting e-mobility by adopting Electric Vehicles

(EV) for its use and by installing fast EV charging stations across the country. Now, it is
operating 16 public EV charging stations.Work on additional 24 public EV charging stations
is in progress.

International presence - Established footprints in 21 countries spread across Asia, Africa, CIS
countries, and Asia-Pacific by providing Consultancy, Project Management, and Asset
Management Services.

The company capitalized assets worth INR207bn in FY22 and the brokerage expects it
to capitalize assets worth INR120bn in FY23. It expects PGCIL’s revenue to grow by
4% YoY to INR101.7bn, while PAT is expected to increase 18.7% YoY to INR38.9bn on
a low YoY base.

REFERENCES

: https://economictimes.indiatimes.com/markets/stocks/recos/buy-avenue-supermarts-target-
price-rs-4636-prabhudas-lilladher/articleshow/93876014.cms;
:https://www.screener.in/company/POWERGRID/consolidated/
: https://www.powergrid.in/
: https://www.quora.com/What-does-Power-Grid-Corporation-of-India-do