The National Investment and Infrastructure Fund (NIIF) and Japan Bank for International Cooperation (JBIC) have collaborated to unveil a $600 million India-Japan fund to promote collaboration and investment between Japan and India in the field of climate and environment. The JBIC and Indian government are the anchor investors in this fund.
The announcement represents NIIF’s inaugural bilateral fund, with the government of India contributing 49 per cent of the desired corpus, while JBIC contributes the remaining 51 per cent. NIIF Limited will oversee the fund’s management, and JBIC IG, a subsidiary of JBIC, will assist NIIFL in facilitating Japanese investments in India.
The India Japan Fund will have a primary focus on investments in environmentally sustainable and low-carbon emission strategies. Its objective is to become the preferred partner for fostering Japanese investments in India. The establishment of the India-Japan fund is a significant achievement in the strategic and economic partnership between the government of Japan and India.
In August 2023, PFC Limited secured a loan worth 1.85 billion Japanese yen from the JBIC to fund KPC Gas Power Corporation’s 11.5 MW waste-to-energy project at Bidadi, Ramanagara district, Karnataka. In March 2023, Power Finance Corporation signed a loan agreement worth $20.2 million with JBIC. The funds raised would be used by PFC to finance its renewable energy portfolio and provide competitive rates.
