NTPC signs JPY 50 billion loan agreement with Japanese financial institution for GREEN initiative
India’s largest power producer National Thermal Power Corporation Limited (NTPC Ltd) has entered into a JPY 50 billion (USD 482 million equivalent to INR 3,582 crore) foreign currency loan agreement with Japan Bank for International Co-operation (JBIC). The loan amount will be utilized by the NTPC towards funding its Capex for FGD (Flue Gas Desulphurization) and renewable energy (RE) projects under JBIC’s Global Action for Reconciling Economic growth and Environment (GREEN) preservation initiative.
The loan agreement was signed through video conferencing by Tanimoto Masayuki, Managing Executive Officer, Global Head of Infrastructure and Environment Finance Group, JBIC and Anil Kumar Gautam, Director (Finance), NTPC.
FGD reduces SOx emission in flue gases in thermal power plants and it’s a significant step for environmental sustainability. While JBIC will provide sixty percent of the facility amount, the balance will be provided by Japan’s different commercial banks (viz. The Nanto Bank Ltd., The Bank of Yokohama Ltd., Sumitomo Mitsui Banking Corporation, the Joyo Bank Ltd. and the San-In Godo Bank Ltd.) under JBIC guarantee. It’s an initiative by JBIC for supporting projects for global environment conservation. The facility is extended under JBIC’s efforts towards supporting projects for reconciling economic growth with environmental conservation.
