New Delhi: Industry lobby PHD Chamber of Commerce and Industry (PHDCCI) on Friday suggested that the government establish a dedicated Green Bank or Climate Finance Facility to catalyse private capital into green technologies, including renewable energy, energy efficiency and electric vehicles.
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The recommendation was part of PHDCCI’s pre-Budget submissions discussed during an interactive session with representatives from the banking, financial services and insurance (BFSI) sector.
According to PHDCCI, participants at the session underscored the need for budgetary support, risk-sharing mechanisms and robust disclosure frameworks to strengthen transparency in green lending and accelerate the flow of capital into climate-aligned projects.
They also suggested that once established, the proposed Green Bank should be permitted to raise funds through green bonds or pooled financing instruments.
Beyond green finance, industry representatives made several additional policy suggestions for the upcoming Union Budget, spanning credit availability, exports and liquidity conditions.
“More credit to MSMEs at lower cost, more support to export hit sectors and more liquidity infusion. I think the rate cuts haven't transmitted the way they should have,” Gurmeet Chadha, chairman of PHDCCI, told PTI.
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The Budget session of Parliament is expected to begin on January 28, with the Union Budget scheduled to be presented on February 1, which falls on a Sunday.