Indian public sector undertaking, NPTC Limited, has signed a loan agreement with the Japan Bank for International Co-operation (JBIC), Japanese Government policy-based financial institution. This foreign currency loan agreement is for USD 482 million, out of which JBIC provided 60 per cent or approximately USD 289 million of the total loan amount. The balance 40 per cent is provided by Japanese commercial banks under JBIC guarantee. These banks include Sumitomo Mitsui Banking Corporation, the Bank of Yokohama Limited, the San-In Godo Bank Limited, the Joyo Bank Limited and the Nanto Bank Limited.
NTPC Limited will utilise these loans for financing its flue gas desulphurisation (FGD) and renewable energy projects. The loan is extended under JBIC’s Growth Investment Facility as part of its GREEN initiative. JBIC’s GREEN (Global action for Reconciling Economic growth and ENvironmental preservation) support initiative is for financing projects that conserve global environment including reduction of greenhouse gas emissions and promote the global deployment of advanced Japanese technologies.
NTPC Limited, the largest thermal power producer in India, has been taking various steps over the years to make its power portfolio greener. It has been procuring significant quantities of renewables and has plans to have at least 32 GW of renewable based capacity by 2032, which will contribute to nearly 25 per cent of its total power generation capacity. The company already has 928 MW of installed renewable energy capacity with 2,298 MW under implementation. A further 3,983 MW has been set under the developer mode where NTPC acts as an intermediary and procures renewable power from developers and sells to discoms with a trading margin.