The NTPC Group has sealed foreign currency loan agreements worth JPY 30 billion with the Japan Bank for International Co-operation (JBIC). The agreements, signed on 26th March 2024, mark a milestone in the collaboration between NTPC and JBIC, affirming their shared commitment to green financing and global environmental conservation efforts.
Under the terms of the agreements, JPY 15 billion each has been allocated to NTPC Limited and NTPC Renewables Energy Limited (NREL). JBIC’s contribution comprises 60% of the total facility amount, with the remaining portion being provided by other commercial banks under JBIC’s guarantee. This funding infusion aligns with JBIC’s ‘Global Action for Reconciling Economic Growth and Environment Preservation’ (GREEN) initiative, aimed at supporting projects that prioritise environmental conservation alongside economic development.
The allocated funds are earmarked for critical projects within the NTPC Group. Specifically, NTPC intends to utilise its share of the loan to finance a portion of its capital expenditure for Flue Gas Desulphurisation (FGD) systems. These systems play a pivotal role in reducing sulfur dioxide (SOx) emissions from thermal power stations, thereby significantly enhancing environmental sustainability efforts. Notably, this marks the second time NTPC has secured financing under JBIC’s GREEN operations in India, underscoring the success and significance of their partnership.
Simultaneously, NREL is set to channel its portion of the loan towards capital expenditure for Renewable Energy Projects. This strategic investment aligns with NREL’s overarching mission to provide reliable, affordable, and sustainable energy solutions, further solidifying its position as a key player in India’s renewable energy landscape.
The loan agreements were formally inked in a ceremony held at NTPC’s Corporate Office in New Delhi. Jaikumar Srinivasan, Director (Finance) of NTPC, and Neeraj Sharma, CFO of NREL, represented their respective entities in signing the agreements. They were joined by Ryuta Suzuki, Director General of the New Energy and Power Finance Department II at JBIC, signifying the collaborative spirit and shared vision driving this landmark financial arrangement.
Speaking on the occasion, representatives from both NTPC and JBIC expressed optimism regarding the transformative impact of this funding infusion on environmental sustainability endeavors. They highlighted the importance of strategic partnerships and innovative financing mechanisms in driving meaningful progress towards a greener, more sustainable future.
