NTPC agrees to $482 million loan deal with Japanese banks

State-owned power producer, NTPC Limited, agreed to terms with the Japan Bank for International Cooperation (JBIC) for a foreign currency loan to the tune of $482 million. Japanese Government-owned bank has offered the funding under its Global action for Reconciling Economic growth and Environment preservation (GREEN) initiative. Under the agreement, JBIC will fund 60 per cent of the agreed amount while the remainder will be funded by commercial banks. These include Sumitomo Mitsui Banking Corporation, Bank of Yokohama, San-In Godo Bank, Joyo Bank, and Nanto Bank. NTPCwill utilise the funds for flue gas desulphurisation (FGD) at its thermal power plants and renewable energy projects. The loan is expected to catalyse NTPCL’s progress in achieving its target emission reduction standards. In February 2020, the company had raised a syndicated loan of $750 million in Japanese Yen to fund FGD systems for its projects

NTPC is an Indian Public Sector Undertaking that is involved in the generation of power in the country. The PSU operates the largest part of India’s coal-based capacity. As India inches towards meeting its renewable goals, NTPC has made strides in taking up renewable projects as well as carrying out the FGD process in its existing plants. In September 2020, the ministry of power announced that it identified 5.1 GW of coal-based plants that will have to be phased out. In September 2020, NTPC had signed an agreement with Greenko Energies Private Limited for exploring the possibility of trading, collaboration, and partnership in integrated renewable energy storage projects set up by Greenko to offer round-the-clock renewable energy power to potential customers in India.

 

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