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

The financing, aligned with JBIC’s “Global Action for Reconciling Economic Growth and Environmental Preservation (GREEN)” initiative, will also be co-financed by Sumitomo Mitsui Banking Corporation (SMBC) and other Japanese banks. The agreement was formalised in Tokyo by PFC CMD Parminder Chopra and JBIC Governor Nobumitsu Hayashi, with a parallel side agreement signed with SMBC in the presence of Rajiv Kannan, Head of India Division, SMBC.

A portion of the loan will fund Assam Bio Ethanol’s pioneering second-generation bio-ethanol and chemicals plant, which uses bamboo as feedstock. This project underscores India’s push for cleaner energy and self-reliance. PFC, under the Ministry of Power, is India’s largest government-owned NBFC by asset size.