JBIC gives 480 million USD loan to NTPC for solar power generation, environmental equipment, a push to Make in India
TOKYO: The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed on October 28 a loan agreement amounting to up to JPY50 billion (of which JBIC’s portion is JPY30 billion) with NTPC Limited (NTPC), India’s state-owned power generation company.
The loan amount is equal to approximately 480 million USD or 3,500 Crore INR.
Toshihide Ando, Chargé d’Affaires a.i., Embassy of Japan in India tweeted, “Announcements from #JBIC (Japan Bank for International Cooperation) on new loans for the auto sector and solar energy in #India. #Japan supports the “Make in India” initiative and India’s efforts to promote solar energy.”
The loan is extended under JBIC’s Growth Investment Facility and is co-financed with Sumitomo Mitsui Banking Corporation, the Bank of Yokohama, Ltd., the San-In Godo Bank, Ltd., the Joyo Bank, Ltd., and The Nanto Bank, Ltd., with JBIC providing a guarantee for the co-financed portion.
This loan is intended to provide NTPC with the necessary funds for solar power generation projects and the installation of environmental equipment in India as a part of GREEN operations.
In India, coal-fired power still accounts for a large proportion of the country’s energy mix, and taking measures against air pollution is an urgent challenge. Under these circumstances, the government of India has been tightening environmental regulations on power plants and developing renewable energy projects in order to stabilize power supplies, while at the same time reducing air pollution.
NTPC, India’s largest state-owned power generation company, has a significant impact on climate change measures and environmental improvement projects led by the government of India. With this financing, JBIC supports efforts made by the government of India and NTPC to preserve the global environment.
As Japan’s policy-based financial institution, JBIC will continue to support global environmental preservation efforts by drawing on its various financial facilities and schemes and by performing its risk-assuming function.
