PFC, JBIC ink Rs 3,500 cr loan pact to fund clean energy projects in India

It operates under the administrative control of the Ministry of Power and serves as the principal financial institution for India's power sector.

Power Finance Corporation and Japan Bank for International Cooperation (JBIC) have signed a loan agreement worth 60 billion Japanese Yen (around Rs 3,500 crore) to finance clean energy projects in India.

The deal not only strengthens economic ties between India and Japan but also marks a crucial step in advancing sustainable development, PFC said in a statement on Friday.

The financing, under JBIC's Global Action for Reconciling Economic Growth and Environmental Preservation (GREEN) initiative, is supported through co-financing from Sumitomo Mitsui Banking Corporation and other Japanese banks.

The loan agreement was signed in Tokyo on Friday by PFC CMD Parminder Chopra and JBIC Governor Nobumitsu Hayashi.

In addition, a side agreement was executed with Sumitomo Mitsui Banking Corporation in the presence of Rajiv Kannan, Managing Executive Director, Head of India Division, SMBC.

The company said a part of the loan will primarily support the establishment of Assam Bio Ethanol Pvt Ltd's pioneering second-generation bio-ethanol and chemicals plant in Assam.

The project, which utilises bamboo as feedstock, is a significant stride toward cleaner energy and self-reliance.

Power Finance Corporation Ltd (PFC) is India's largest government-owned non-banking financial company (NBFC) based on asset size (consolidated).

It operates under the administrative control of the Ministry of Power and serves as the principal financial institution for India's power sector.