Power Finance Corporation (PFC) has entered into a landmark loan agreement with the Japan Bank for International Cooperation (JBIC) for JPY 120 billion (approximately Rs. 6,500 crore). The agreement, signed on January 15, marks the largest green financing deal executed by JBIC with any Indian company.
Under the agreement, JBIC will contribute JPY 72 billion, with the remaining amount to be funded by commercial banks. This long-term facility is part of JBIC’s ‘Global action for Reconciling Economic growth and Environmental preservation’ (GREEN) initiative, which supports projects that significantly reduce greenhouse gas emissions. The funds will enable PFC to expand its renewable energy portfolio, aligning with India’s transition to non-fossil fuel-based energy sources.
The agreement was signed by PFC Chairperson and Managing Director (CMD) Parminder Chopra and JBIC Senior Managing Director Ogawa Kazunori, in the presence of Takashi Ariyoshi, Minister & Deputy Chief of Mission, Embassy of Japan, and other dignitaries.
Speaking on the occasion, PFC CMD Parminder Chopra highlighted, “This new credit line, four times larger than the previous one, provides a longer tenor of up to 20 years. With the support of international lenders like JBIC, PFC is poised to play a pivotal role in advancing India’s renewable energy goals.”
JBIC’s Ogawa Kazunori emphasized the strategic importance of India-Japan cooperation, stating, “This credit line represents a significant step in strengthening bilateral ties and supporting sustainable economic development in India.”
