In the first funding for NTPC Ltd under Japan Bank for International Co-operation (JBIC)’s Global action for Reconciling Economic growth and ENvironmental preservation (GREEN) operation, India’s largest power producer on Wednesday entered into a foreign currency loan agreement with the Japanese Government’s financial institution for JPY 50 billion (nearly $482 million or Rs 35.82 billion).
JBIC will provide 60 per cent of the facility amount and the balance will be given by Japanese commercial banks, viz. Sumitomo Mitsui Banking Corporation, the Bank of Yokohama Ltd., San-In Godo Bank Ltd, Joyo Bank Ltd and The Nanto Bank Ltd under JBIC guarantee.
The facility is extended under JBIC’s outreach for projects that ensure the conservation of the global environment. The loan proceeds shall be utilised by NTPC for funding its Capex for flue gas desulphurisation (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 loan 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.