India’s largest power producer NTPC Ltd has entered into a $200 million loan agreement with the Japan Bank for International Co-operation (JBIC).
JBIC, a Japanese government financial institution, provided 60% of the loan and other commercial banks provided the balance amount under JBIC guarantee.
The facility has been extended under JBIC’s initiative entitled ‘Global Action for Reconciling Economic Growth and Environment Preservation’ (“GREEN”) for projects that ensure the conservation of the global environment. This is the second loan for NTPC under JBIC’s GREEN operations in India.
The loan will be used by NTPC to fund part of its capex needs for Flue Gas Desulphurization (FGD), which reduces SOx emission in the flue gases of thermal power stations.
The money will also be used to fund capex for renewable energy projects, which would facilitate its mission of providing reliable, affordable, and sustainable energy.
According to its website, NTPC has an installed capacity of 75,418 MW, Rs 353 crores of community investment and a 25% share in all India power generation.
India’s renewables sector has been attracting increasing foreign investment and is among its top five industries for overseas funds, with a 5% share of all inflows in April-September 2022, compared with 3.3% in the same period a year ago, according to Reuters.
Earlier this month, Matrix Gas & Renewables Ltd (Matrix) raised Rs 350 crore ($42 million) in a pre-IPO round to accelerate the expansion of its gas business, fund acquisitions, and meet capital expenditure plans. Separately, Gensol Engineering raised Rs 900 crore ($109 million) through convertible warrants on a preferential basis.
