NTPC, JBIC Collaborate To Finance Renewable Energy Project In India

NTPC, JBIC Collaborate To Finance Renewable Energy Project In India

Japan Bank for International Cooperation (JBIC) Governor, HAYASHI Nobumitsu has signed a loan agreement that amounts to up to JPY15 billion of which JBIC’s portion is JPY9 billion, with NTPC Renewable Energy Limited (NREL) of India.

The loan is co-financed with Sumitomo Mitsui Banking Corporation and the Bank of Fukuoka, Ltd. JBIC also claims to provide a guarantee for the portion co-financed by the private financial institutions. NREL is engaged in the renewable energy generation business under NTPC Limited, India’s state-owned power generation company. This loan is intended to provide NREL with the necessary funds for the renewable energy generation business in India as part of green operations.

The government of India pledged on the country’s Independence Day in August 2021 to become “energy independent” by 2047, and at COP26 in November 2021. It committed to achieve carbon neutrality by 2070. Also, the government of India aspires to achieve 50% cumulative electric power generation from non-fossil fuel-based energy resources by 2030 as its Nationally Determined Contribution (NDC). It also set an action plan to address climate change under the Paris Agreement, and it promotes such climate change actions as the introduction of renewable energy and the facilitation of the spread of EVs.

To achieve the goal of carbon neutrality set by the government of India, NREL is promoting renewable energy generation business. With this financing, JBIC supports efforts made by the government of India and NREL to preserve the global environment. As Japan’s policy-based financial institution, JBIC will continue to financially support initiatives for global environmental preservation, by drawing on its various financial facilities and schemes and by performing its risk-assuming function.

As Japan’s policy-based financial institution, JBIC continues to financially support clean energy initiatives for global environmental preservation, by drawing on its various financial facilities and schemes and by performing its risk-assuming function. For instance, last year, Power Finance Limited (PFC) Limited secured a loan of 1.85 billion Japanese yen from the Japan Bank for International Co-operation (JBIC). The loan was taken for a waste-to-energy project being set up at Bidadi, Ramanagara District, Karnataka.

Similarly, Japan also provided lines of credit to the state-run Indian Renewable Energy Development Agency Ltd (IREDA) and India Infrastructure Finance Company Ltd (IIFCL) for a renewable energy capacity of 8 GW. The country also committed a 232.21-billion-yen (about $1.55 billion) as an Official Development Assistance (ODA) loan for nine projects across various sectors in India which included projects for road connectivity, climate change response, and horticulture, etc.

India has collaborated with Japan to finance a $5-billion partnership. This collaboration was undertaken with a Japanese industrial group for green ammonia production in Odisha, India. The goal of the collaboration is to bring a reduction of 54 million tons of CO2e over its lifecycle. The first delivery to Japan is scheduled for 2027.

Similarly, Cabinet Minister of Large & Medium Industries and Infrastructure Development, Government of Karnataka MB Patel recently, in his social media post on X, announced a collaboration between Karnataka and Japan to manufacture Electric Vehicles (electric vehicles (EVs) in the state. This was a step towards building a robust Karnataka-Japan relationship. The collaboration between Karnataka and Japan has thrived, and the state government is dedicated to taking it to new heights. With over 525 Japanese companies, including industry giants Toyota and Honda, actively involved in industrial activities, Karnataka is a hub of innovation.