State-run NTPC group has inked foreign currency loan agreements worth JPY 30 billion, or roughly $200 million, with the Japan Bank for International Co-operation (JBIC).

The loan facility of around ₹1,650 crore extended by the Japanese Government’s policy-based financial institution, is divided into two equal halves for NTPC and its clean energy solutions arm NTPC Renewables Energy (NREL), the Maharatna said in a statement late on Tuesday night.

“JBIC has provided 60 per cent of the facility amount and the balance of the facility amount has been provided by other commercial banks under JBIC guarantee,” it added.

The facility has been extended under JBIC’s initiative, Global action for reconciling economic growth and environment preservation (GREEN), for projects that ensure conservation of the global environment.

India’s largest power generator will utilise the loan for funding part of its capex requirements for Flue Gas Desulphurization (FGD), which substantially reduces SOx emission in the flue gases of thermal power stations and is a positive step towards environmental sustainability.

This is the second loan extended to NTPC under JBIC’s GREEN operations in India. The loan proceeds will also be used by NREL for funding its capex for renewable energy projects, which would facilitate its mission to provide reliable, affordable and sustainable energy.

Earlier this month, the power major said it crossed the 400 billion units (BU) generation mark on March 13, 2024. During FY23, the company had generated 399.3 BU.

NTPC has an installed capacity of 75.4 gigawatts (GW), while 18 GW capacity, including 5 GW of renewables, is under construction.

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