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In a significant move towards enhancing environmental sustainability, the NTPC group has announced its entry into loan agreements with the Japan Bank for International Co-operation (JBIC), a policy-based financial institution of the Japanese Government. The agreements cumulate to a total of JPY 30 billion (approximately USD 200 million or Rs. 1650 crore), evenly distributed between NTPC Limited and its renewable energy subsidiary, NTPC Renewables Energy Limited (NREL), with each receiving JPY 15 billion.
The loan, which sees JBIC contributing 60% of the total amount while the remainder is covered by various commercial banks under JBIC’s guarantee, is part of JBIC’s ‘Global Action for Reconciling Economic Growth and Environmental Preservation’ (GREEN) initiative. This initiative aims at funding projects that contribute to the global environmental conservation.
NTPC intends to utilize the funds for its capital expenditure requirements specifically for the installation of Flue Gas Desulphurization (FGD) systems across its thermal power stations. This technology is crucial for significantly reducing sulfur oxide (SOx) emissions, marking a pivotal step towards reducing the environmental impact of power generation. This is not the first time NTPC has availed a loan under JBIC’s GREEN operations, showcasing a continued commitment to environmental stewardship.
On the other hand, NREL plans to allocate its portion of the loan towards capital expenditure for renewable energy projects. These projects are in line with NREL’s mission to provide reliable, affordable, and sustainable energy, further emphasizing the group’s focus on green energy solutions.
The loan agreements were formalized in a ceremony held at the NTPC Corporate office in New Delhi on March 26, 2024. The signatories included Shri Jaikumar Srinivasan, Director (Finance) of NTPC, and Shri Neeraj Sharma, CFO of NREL, alongside Mr. Ryuta Suzuki, Director General, New Energy and Power Finance Department II, JBIC.
This financial collaboration between NTPC, NREL, and JBIC represents a significant leap towards fulfilling India’s commitment to environmental sustainability and the promotion of renewable energy sources. |
