NTPC Ltd. enters into 50 billion Yen foreign currency loan agreement with Japanese financial institutions
New Delhi, October 30, 2020
NTPC Limited, India’s largest power producer, has entered into a foreign currency loan agreement with Japanese financial institutions for JPY 50 billion (approximately US$ 482 million or Rs. 3,582 crore).
In the first funding for NTPC Ltd under Japan Bank for International Co-operation (JBIC)’s GREEN or Global Action for Reconciling Economic growth and Environment preservation initiative, JBIC will provide 60% of the facility amount.
The balance will be given by commercial banks (Sumitomo Mitsui Banking Corporation, the Bank of Yokohama Ltd., the San-In Godo Bank Ltd., the Joyo Bank Ltd. and The Nanto Bank Ltd.), under JBIC guarantee.
The facility is extended under JBIC’s outreach for projects, which ensures the conservation of the global environment. The loan proceeds will be utilized by NTPC Ltd, the PSU under Ministry of Power, for funding its capex for Flue Gas Desulphurization (FGD) & Renewable Energy projects. FGD substantially reduces the SOx emission in the flue gases of thermal power plants and is a critical step towards environmental sustainability.
The loan agreement was signed on Wednesday by Anil Kumar Gautam, Director (Finance), NTPC and Tanimoto Masayuki, Managing Executive Officer, Global Head of Infrastructure & Environment Finance Group, JBIC through video conferencing.