India’s state-run power giant, NTPC, has entered into foreign currency loan agreements worth JPY 30 billion, equivalent to approximately $200 million, with the Japan Bank for International Cooperation (JBIC).
This significant financing, announced late on Tuesday, underscores NTPC’s commitment to bolstering its green energy initiatives and promoting environmental sustainability. Under the terms of the loan facility, totalling around ₹1,650 crore, JBIC will extend 60% of the amount, with the remaining portion being provided by other commercial banks under JBIC guarantee. This financial support aligns with JBIC’s overarching initiative, Global Action for Reconciling Economic Growth and Environment Preservation (GREEN), aimed at funding projects that contribute to global environmental conservation efforts. The funds secured through this agreement will be allocated towards NTPC’s capital expenditure requirements for Flue Gas Desulphurisation (FGD), a critical technology that significantly reduces sulphur dioxide (SOx) emissions from thermal power stations. By investing in FGD technology, NTPC aims to enhance its environmental stewardship by curbing harmful emissions and fostering sustainable energy practices.
Notably, this marks the second loan extended to NTPC under JBIC’s GREEN operations in India, reflecting the success and mutual commitment of both entities towards promoting eco-friendly initiatives. Additionally, the loan proceeds will support NTPC Renewables Energy (NREL) in funding its renewable energy projects, further advancing NTPC’s mission to provide reliable, affordable, and sustainable energy solutions. This financing milestone comes on the heels of NTPC’s recent achievement of crossing the 400 billion units (BU) generation mark on March 13, 2024. With an installed capacity of 75.4 gigawatts (GW) and an additional 18 GW capacity, including 5 GW of renewables, under construction, NTPC continues to play a pivotal role in India’s energy landscape, driving innovation and progress in the sector. The loan agreement with JBIC underscores NTPC’s unwavering commitment to advancing green initiatives and underscores its strategic focus on environmental sustainability and renewable energy development.
