DAILY NEWS ANALYSIS

Sovereign Green Bonds

• The Reserve Bank of India (RBI) will issue Sovereign Green Bonds for the first time in the current fiscal year in two tranches of Rs 8,000 crore each.
• On January 25 and February 9, the RBI would issue green bonds for five and ten years worth Rs 4,000 crore each.
• In November 2022, the government released the blueprint for the sovereign green bond.

About the green bond:

• Companies, nations, and international organizations all offer green bonds, which guarantee fixed-income payments to investors while only funding initiatives that benefit the environment or the climate.
• The initiatives could involve, among other things, green buildings, sustainable transportation, and renewable energy.
• These bonds' earnings are designated for environmental projects. This is different from regular bonds, which allow the issuer to use the proceeds for a variety of things.
• Since the market's launch in 2007, there have been cumulative issuances on the global green bond market totaling more than USD 1 trillion.
• According to the London-based Climate Bonds Initiative, by the end of 2020, 24 national governments would have issued sovereign green, social, and sustainability bonds worth a total of USD 111 billion.

How would the Indian economy benefit from the Sovereign Green Bonds?

• In order to reduce the economy's carbon intensity, environmentally friendly public sector projects will be funded with the proceeds from the sovereign green bonds.
• These green bonds will also aid with the government's lofty goals, such as achieving 175 gigawatts of renewable energy capacity by 2022 and achieving net zero carbon emissions by 2070.
• Governments and authorities are sent a strong signal of intent about climate change and sustainable development by sovereign green issuance.
• It will spur the growth of the local market and provide institutional investors a boost.

Way Forward

• Addressing the institutional hurdles to entry into this market will benefit from appropriate capacity development activities for issuers in emerging nations to disseminate information on the advantages and associated processes and procedures pertaining to green bonds.

Ganga Vilas River cruise

• The longest river cruise in the world, the "Ganga Vilas," from Varanasi to Dibrugarh via Bangladesh, will take sail on January 13 with Prime Minister Narendra Modi as the master of ceremonies.
• The luxurious ship, which has room for 80 people, will travel 3200 kilometers in 50 days, traversing through 27 river systems in Bangladesh and India.

Significance of the cruise:

• The Cruise will examine the enormous resources that our rich river system has to offer.
• As tourists are able to experience India's spirituality, education, well-being, culture, and biodiversity riches, our rich history will continue to transcend on a worldwide scale.
• During the 51-day trip stops will be made at 50 tourist destinations, including World Heritage Sites, National Parks, river Ghats, and important cities like Patna in Bihar, Sahibganj in Jharkhand, Kolkata in West Bengal, Dhaka in Bangladesh, and Guwahati in Assam.
• The ship is built with sustainability concepts at its core and has technologies for noise reduction and pollution-free operations.
• The growth of this industry would create job opportunities in the hinterland.
• For maximum exposure and quick growth of this industry in the nation, river tourism circuits will be constructed and connected with the already-existing tourism circuits.

Constraints in Tourism Sector:

• Promotional and marketing restrictions in the tourism sector: despite growth, online branding and marketing efforts are still fragmented.
• Poor management of tourist information centers makes it difficult for domestic and international visitors to easily access information.
• Lack of Skills: A major obstacle to providing guests with a top-notch experience is the scarcity of people who have received proper training for the tourism and hospitality sectors.
• The sector's expansion is hampered by a shortage of multilingually qualified tour guides and a lack of local awareness of the advantages and obligations of a growing tourism industry.
• Underutilization of Tourism Potential: In the World Economic Forum's 2019 Travel & Tourism Competitiveness Report, India placed eighth out of 140 nations in terms of cultural resources and business travel, thirteenth in terms of price competitiveness, and fourteenth in terms of natural resources.
• Despite these excellent scores, India's total tourism competitiveness ranking of 34 indicates that India has not fully capitalized on or promoted the priceless treasures ingrained in its tradition, as other nations do.
• Infrastructure and Connectivity: Poor connectivity and insufficient infrastructure make it difficult for visitors to several historic places.
• India also boasts a variety of tourist locations, although there aren't many circuits or portions like the Golden Triangle (Delhi-Agra-Jaipur)

Way Forward

• One India One Tourism's Approach: Tourism is a multi-ministerial endeavor that occurs both within and across states.
• Thus, a National Tourism Council is needed, a powerful legislative entity that will enable quick action on issues relating to tourism at the federal and state levels and establish a "One India, One Tourism" philosophy.
• The construction of infrastructure related to tourism, such as hotels, resorts, equipment, parks, etc., should be classified as "infrastructure" so that loan applications from the promoters can be processed quickly.
• Developing Skills: It's important to involve local people in tourism by encouraging them to launch small businesses that supply the sector.
• In order to fully guarantee a seamless tourist transportation experience, all interstate road taxes must be standardized and made payable at a single location. This will make conducting business easier.
• Given the opportunities, the tourism industry has the potential to resurrect growth and promote India's brand internationally.