On October 28, 2020, NTPC (formerly known as National Thermal Power Corporation Limited) Limited signed foreign currency loan agreement with Japanese Government’s financial institution, Japan Bank for International Co-operation (JBIC) for JPY (Japanese Yen) 50 billion (approx. USD 482 million or Rs. 3,582 crore) under its Global Action for Reconciling Economic growth and Environment preservation (GREEN) initiative.
- It should be noted that this is the first funding for NTPC Ltd under JBIC’s GREEN initiative.
- The loan agreement was signed by Anil Kumar Gautam, Director (Finance), NTPC and Masayuki Tanimoto, Managing Executive Officer, Global Head of Infrastructure & Environment Finance Group, JBIC through video conferencing.
Key Points:
–The loan amount will be used by NTPC for funding its capex (Capital Expenditure) for Flue Gas Desulphurization (FGD) & Renewable Energy (RE) projects.
- FGD, substantially reduces the SOx (Sulfur oxides) emission in the flue gases of thermal power plants.
–JBIC will provide 60% of the facility amount and the balance will be given by commercial banks (viz., Sumitomo Mitsui Banking Corporation (SMBC), the Bank of Yokohama Ltd., the San-In Godo Bank Ltd., the Joyo Bank Ltd. and The Nanto Bank Ltd.), under JBIC guarantee.
About JBIC’s GREEN Initiative:
Under the GREEN operations, JBIC provides enhanced support for projects which ensures conservation of environment in developing countries in the form of loans, guarantees and equity financing, while mobilizing private-sector funds.
- GREEN projects include development of photovoltaic generation facilities using advanced environmental technologies and highly energy-efficient power plants, as well as installation of energy-saving equipment.
SBI inks $1 bn pact with JBIC to help auto firms
Apart from NTPC, State Bank of India (SBI) also signed a loan agreement of $1 billion with JBIC under which the latter will provide funds for the manufacturers, suppliers and dealers of Japanese automakers in India.
- Of the total loan amount, $600 million will be financed by JBIC and $400 million by other participating Japanese banks such as SMBC, MUFG Bank, Mizuho Bank, Shizuoka Bank and Bank of Yokohama.
Recent Related News:
i.On September 8, 2020,the International Solar Alliance (ISA) signed a partnership agreement with NTPC Ltd to help the latter  to secure solar projects in 47 least developed and small island developing ISA member countries.
ii.On 16th July 2020, NTPC signs the Memorandum of Understanding (MoU) with National Investment and Infrastructure Fund(NIIF), acting through National Investment and Infrastructure Fund Limited(NIIFL) to seek investment opportunities in areas like renewable energy, power distribution and other areas of mutual interest in India.
About NTPC Limited:
Chairman & Managing Director (CMD)– Gurdeep Singh
Headquarter– New Delhi
Parent Ministry– Ministry of Power
Japan Bank for International Co-operation (JBIC):
Governor– Tadashi Maeda
Headquarter– Tokyo, Japan
