NTPC entered into foreign currency loan agreement with Japanese government’s financial institution Japan Bank for International Co-operation (JBIC) for JPY 50 billion (around USD 482 million or Rs 3,582 crore).
This is the first funding for NTPC under JBIC’s Global action for Reconciling Economic growth and Environment preservation (GREEN) initiative.
JBIC will provide 60 percent of the facility amount and the balance will be given by commercial banks viz, the Sumitomo Mitsui Banking Corporation, the Bank of Yokohama, the San-In Godo Bank, the Joyo Bank and the Nanto Bank, under JBIC guarantee.
The facility is extended under JBIC’s outreach for projects which ensure conservation of global environment. The loan proceeds will be utilised by NTPC for funding its capex for Flue Gas Desulphurization (FGD) & renewable energy (RE) projects.
FGD substantially reduces the SOx emission in the flue gases of thermal power plants and is a critical step towards environmental sustainability.