State-owned NTPC, India’s largest power producer, has signed a loan pact with a Japanese agency, enabling it to receive 200 million dollars in foreign currency loans (or JPY 30 billion, roughly Rs 1 650 crore today).
The loan deal divides the funds this way : Japanese Bank for International Cooperation (JBIC), which is a public policy-based financial institution of JAPAN, will provide 60% and other general banks under their guarantee arrangement provide an additional. 40% .portion
A major step in developing their respective businesses, the financing agreement provides for NTPC Ltd and NTPC Renewables Energy Limited (NREL) to each receive a JPY 15 billion loan.
This financing initiative falls under JBIC’s ‘Global action for Reconciling Economic growth and Environment preservation’ (‘GREEN’) framework, aimed at supporting projects that contribute to environmental conservation.
The loan proceeds allocated to NTPC will be utilized to fund part of its capital expenditure (capex) for Flue Gas Desulphurization (FGD), a technology aimed at significantly reducing SOx emissions in thermal power station flue gases. This investment underscores NTPC’s commitment to environmental sustainability.
