In a significant stride towards bolstering environmental sustainability initiatives, the NTPC group has forged loan agreements with the Japan Bank for International Co-operation (JBIC), a premier policy-based financial institution of the Japanese Government.
The agreements, amounting to a substantial JPY 30 billion (equivalent to approximately USD 200 million or Rs. 1650 crore), represent a concerted effort towards promoting green energy solutions and mitigating the environmental impact of power generation. Under the loan agreements, JBIC extends 60% of the total amount, with the remaining portion guaranteed by various commercial banks under JBIC’s auspices. This financial collaboration aligns with JBIC’s overarching ‘Global Action for Reconciling Economic Growth and Environmental Preservation’ (GREEN) initiative, which seeks to support projects conducive to global environmental conservation efforts. NTPC, a stalwart in the Indian power sector, intends to utilise its share of the loan towards capital expenditure for the deployment of Flue Gas Desulphurisation (FGD) systems across its thermal power stations. These FGD systems play a pivotal role in mitigating sulphur oxide (SOx) emissions, thereby significantly reducing the environmental footprint of conventional power generation methods. Notably, this isn’t NTPC’s inaugural foray into availing loans under JBIC’s GREEN operations, underscoring the organisation’s steadfast commitment to environmental stewardship.
Conversely, NTPC’s renewable energy subsidiary, NTPC Renewables Energy Limited (NREL), plans to allocate its share of the loan towards capital expenditure for renewable energy projects. These endeavours are in consonance with NREL’s core mission of providing reliable, affordable, and sustainable energy solutions, thus accentuating the group’s concerted focus on green energy initiatives. The formalisation of the loan agreements culminated in a ceremonious event held at the NTPC Corporate office in New Delhi, underscoring the significance of the collaboration. Key stakeholders, including NTPC’s Director (Finance), Shri Jaikumar Srinivasan, and NREL’s CFO, Shri Neeraj Sharma, along with Mr. Ryuta Suzuki, Director General of JBIC’s New Energy and Power Finance Department II, graced the occasion with their presence. This strategic financial collaboration between NTPC, NREL, and JBIC marks a pivotal milestone in India’s journey towards environmental sustainability and underscores the collective commitment towards fostering renewable energy sources and reducing carbon emissions.
