NTPC signs agreement with Japan Bank for International Cooperation for Rs 3,500 crore loan
The electric power distribution company, NTPC on Wednesday signed an agreement with Japan Bank for International Cooperation (JBIC) for a loan worth Rs 3,500 crore.
The electric power distribution company, NTPC on Wednesday signed an agreement with Japan Bank for International Cooperation (JBIC) for a loan worth Rs 3,500 crore. The facility is extended under JBIC's Global Action for Reconciling Economic growth and Environment preservation (GREEN) for projects which ensure the conservation of the global environment.
"NTPC entered into foreign currency loan agreement with JBIC, the Japanese Government policy-based financial institution, for JPY 50 billion (approximately USD 480 million or Rs 3,500 crore)," a company statement said.
As per the agreement, JBIC will provide 60 per cent of the loan amount and the balance will be extended by commercial banks namely Sumitomo Mitsui Banking Corporation, Bank of Yokohama, San-In Godo Bank, Joyo Bank and Nanto Bank, under the JBIC guarantee, NTPC said.
The loan proceeds shall be utilized by the company for funding its CapEx for Flue Gas Desulphurization (FGD) and renewable energy projects.
FGD substantially reduces sulphur oxide emission in the flue gases of thermal power plants and is a positive step towards environmental sustainability.
This is the first loan for NTPC under JBIC's GREEN operations in India, it claimed.