PFC, JBIC Sign Rs 3,500 Cr Loan Deal for India's Clean Energy

• PFC and JBIC sign Rs 3,500 crore loan for clean energy projects.
• Loan supports Assam’s bio-ethanol plant using bamboo feedstock.
• Deal under JBIC’s GREEN initiative boosts India-Japan sustainable development ties

Power Finance Corporation (PFC) and Japan Bank for International Cooperation (JBIC) signed a loan agreement, in the amount of 60 billion Japanese Yen (around Rs 3,500 crore) to finance clean energy initiatives in India. The loan agreement was signed in Tokyo by PFC CMD Parminder Chopra and JBIC Governor Nobumitsu Hayashi, and it enhances the economic relationship between India and Japan and advances the sustainable development agenda under the JBIC's Global Action for Reconciling Economic Growth and Environmental Preservation (GREEN).

In addition to the loan agreement between PFC and JBIC, Sumitomo Mitsui Banking Corporation (SMBC) and other Japanese banks would co-finance the loan agreement, and the side agreement was signed in the presence of Rajiv Kannan, Head of India Division from SMBC.

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The proposed loan amount will support Assam Bio Ethanol Pvt Ltd with the investment for the construction of its innovative second-generation bio-ethanol and chemicals plant in Assam, using bamboo as feedstock. This plant will be a critical piece to cleaner energy and India's energy independence.

PFC Ltd is the largest government owned non-banking financial company (NBFC) in India by asset size and is governed by the Ministry of Power, and the main financing institution for India’s power sector. The partnership reinforces India's commitment to clean and green energy and holds a significant role in India's global clean energy initiatives.