New Delhi (NVI): India’s largest power producer, NTPC Ltd. today signed a loan agreement with JBIC, the Japanese Government policy based financial institution for JPY 50 billion or USD 482 million under GREEN initiative.
The agreement was signed by Anil Kumar Gautam, Director (Finance), NTPC and TANIMOTO Masayuki, Managing Executive Officer, Global Head of Infrastructure & Environment Finance Group, JBIC through video conferencing.
“NTPC entered into foreign currency loan agreement with Japan Bank for International Cooperation (JBIC), the Japanese Government’s financial institution, for JPY 50 billion (approximately USD 480 million or Rs 3,500 crore),” the Ministry of Power said in a statement.
This is the first loan to NTPC Ltd, which is extended under JBIC’s GREEN or Global Action for Reconciling Economic growth and Environment preservation for projects which ensure conservation of global environment.
JBIC will provide 60 per cent of the facility amount and the balance will be given by commercial banks like Sumitomo Mitsui Banking Corporation, the Bank of Yokohama, the San-In Godo Bank, the Joyo Bank and The Nanto Bank, under the JBIC guarantee, the ministry said.
Furthermore, the loan proceeds will be utilized by NTPC Ltd, the PSU under Ministry of Power, for funding its capex for Flue Gas Desulphurization (FGD) and renewable energy projects.
FGD, substantially reduces the SOx emission in the flue gases of thermal power plants and is a critical step towards environmental sustainability, the statement noted.