With resource crunch being a major hurdle for achieving sustainable growth, the Economic Survey favoured setting up of 'National Green Fund' to finance public private sectors aimed at protecting the environment.
As per preliminary estimate, India would require Rs. 2,30,000 crore to meet the targets of eight missions under the National Action Plan on Climate Change by 2022. Generating this amount from the government source would be a difficult task, the survey said.
While the government provides budgetary support for climate change action and impose carbon tax like Rs. 50 per tonne on coal, the survey said relying on government subsidy and tax is not the most viable option.
"Therefore, India is experimenting with a careful mix of market mechanisms together with fiscal instruments and regulatory interventions," it said, while backing the Planning Commission's suggestion for the green fund in PPP mode, in the 12th Five Year plan.
The fund can be the mechanism to utilise money received from United Nations' Green Climate Fund domestically, the report said. The framework of GCF has been finalised and it is expected to receive money for disbursement among countries by 2014.
In conclusion, the survey said, India was on the right track in achieving environmental sustainability as it has the right enabling environment but money remained a concern.