NEW DELHI: State-run power producer NTPC Ltd, has inked a foreign currency loan agreement with the Japan Bank for International Cooperation (JBIC), under which it will borrow 50 billion Japanese Yen (JPY)-around Rs 3,500 crore.
Under the terms of the agreement, JBIC will extend 60 per cent of the loan amount and the rest will be put up by other Japanese commercial banks under the JBIC guarantee. These lenders are Sumitomo Mitsui Banking Corporation, Bank of Yokohama, San-In Godo Bank, Joyo Bank and Nanto Bank.
JBIC is a Japanese public-sector financial institution and export credit agency, and acts as the international wing of the Japan Finance Corporation (JFC), which in turn is administered by the Japanese Ministry of Finance. “The facility is extended under JBIC’s outreach for projects, which ensure conservation of global environment.
The loan proceeds shall be utilised by NTPC for funding its capex for Flue Gas Desulphurization (FGD) & Renewable Energy projects. FGD, substantially reduces the SOx (Sulphur oxides) emission in the flue gases of thermal power plants and is a critical step towards environmental sustainability,” NTPC said in its statement.
The loan facility has been extended to NTPC under JBIC’s Global Action for Reconciling Economic growth and Environment preservation (GREEN) for projects which ensure conservation of global environment. While JBIC has spearheaded several such loans to Indian companies over the past few years, across sectors, this is the first loan extended to NTPC under JBIC’s GREEN operations. The loan will help NTPC fasttrack progress in achieving the targeted emission Qreduction standards within the stipulated time.
