NTPC Group has inked a foreign currency loan pact with the Japan Bank for International Cooperation (JBIC). The total funding is equivalent to JPY 30 billion, with JPY 15 billion allocated to both NTPC Limited and NTPC Renewables Energy Limited (NREL). JBIC has contributed 60 per cent of the funding, with the remaining portion sourced from other commercial banks under guarantee of JBIC. This financing is part of JBIC’s initiative called Global action for Reconciling Economic growth and Environment preservation (GREEN), aimed at supporting projects that contribute to global environmental conservation efforts.
The loan funds shall be utilised by NTPC for funding part of its capital expenditure requirements for flue gas desulphurisation. This is the second loan for NTPC under JBIC’s GREEN operations in India. The loan proceeds shall be utilised by NREL for funding its capex for renewable energy projects which would facilitate its mission for providing reliable, affordable and sustainable energy.
Last year, the National Investment and Infrastructure Fund (NIIF) and Japan Bank for International Cooperation (JBIC) 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.
