New Delhi, NTPC, a leading state-owned power company, has sealed a deal with a Japanese agency to secure foreign currency loans totaling USD 200 million (JPY 30 billion or approximately Rs 1,650 crore). The Japan Bank for International Cooperation (JBIC), a government-backed financial institution, will provide 60% of the loan amount, with the remainder covered by other commercial banks under JBIC’s guarantee, as per a statement issued by NTPC.
The agreements have been finalized for loans of JPY 15 billion each, allocated to both NTPC Ltd and NTPC Renewables Energy Ltd (NREL), the statement added.
These loans fall under JBIC’s initiative called ‘Global action for Reconciling Economic growth and Environment preservation’ (“GREEN”), which aims to support projects contributing to global environmental conservation.
NTPC plans to utilize the loan funds to finance part of its capital expenditure for implementing Flue Gas Desulphurization (FGD) technology. FGD is aimed at significantly reducing SOx emissions in the flue gases of thermal power stations, thereby promoting environmental sustainability, highlighted the statement.
This agreement marks NTPC’s second loan arrangement under JBIC’s GREEN operations in India.
Similarly, NREL intends to use the loan funds to finance its capital expenditure for renewable energy projects, in line with its objective of providing reliable, affordable, and sustainable energy solutions.
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