In a major push to India’s clean energy projects, a ₹3,500 crore deal was signed between the country’s Power Finance Corporation (PFC) and the Japan Bank for International Cooperation (JBIC) in Tokyo on Friday.
The loan agreement, worth around 60 billion Japanese Yen, is aimed at financing clean energy projects in India, partly through the establishment of Assam Bio Ethanol Pvt Ltd's pioneering second-generation bio-ethanol and chemicals plant in Assam that utilises bamboo as feedstock.
The deal is being viewed as a strategic move that will strengthen economic ties between India and Japan, while also upholding both countries’ commitment to advancing sustainable development, PFC said in a statement on Friday.
The financing is supported through co-financing from Sumitomo Mitsui Banking Corporation and other Japanese banks under JBIC's Global Action for Reconciling Economic Growth and Environmental Preservation (GREEN) initiative.
Also Read: India’s first private 2G ethanol plant to use bamboo as feedstock
In addition, a side agreement was executed with Sumitomo Mitsui Banking Corporation in the presence of Rajiv Kannan, Managing Executive Director, Head of India Division, SMBC.
Power Finance Corporation Ltd (PFC) is India's largest government-owned non-banking financial company (NBFC) based on asset size (consolidated) and operates under the administrative control of the Ministry of Power. It serves as the principal financial institution for India's power sector.
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