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PFC Signs 120 Billion JPY Loan Agreement with JBIC for Renewable Energy Projects in India.

Banking & Finance | Dated: 20 Jan 2025

In January 2025, Power Finance Corporation Limited (PFC), based in New Delhi, signed a 120 billion Japanese Yen (JPY) loan agreement with Japan Bank for International Cooperation (JBIC) to support Renewable Energy (RE) projects in India.

🎯 Key Highlights:

  • - The loan agreement includes a contribution of JPY 72 billion (Rs 40.04 billion) from JBIC, with the remaining amount being provided by commercial banks.
  • - The loan is aimed at supporting India's commitment to achieving net-zero carbon emissions and transitioning to cleaner energy sources.
  • - The agreement was signed by Parminder Chopra, Chairman and Managing Director (CMD) of PFC, and Ogawa Kazunori, Senior Managing Director of JBIC, in Japan.

💡 Other Important Facts:

  • (i) The long-term loan has a tenure of up to 20 years and is part of JBIC's 'Global Action for Reconciling Economic Growth and Environmental Preservation' (GREEN) initiative.
  • (ii) This agreement marks JBIC's largest green financing deal with any Indian company, underscoring its commitment to sustainable energy projects in India.
  • (iii) PFC will use the loan to fund energy projects, including RE, next-generation energy supply, and energy-efficient power generation, contributing to India's goal of achieving 50% electric power generation from non-fossil fuel-based sources by 2030.

📚 Test Your Knowledge:

What is the total loan amount signed by PFC and JBIC for renewable energy projects in India?

Correct Answer: 120 billion JPY

🚀 Quick Recap:

About Power Finance Corporation (PFC)

  • CMD : Parminder Chopra
  • Headquarters : New Delhi