NTPC to borrow $478 million from Japanese banks to fund clean energy
CHENNAI: India’s largest electricity generator NTPC Ltd said on Wednesday it would borrow 50 billion yen ($478 million) from Japanese banks to fund the installation of emission-cutting equipment and green energy projects.
“The loan proceeds will be utilized by NTPC Ltd, the PSU under ministry of power, for funding its capex for Flue Gas Desulphurization (FGD) & Renewable Energy projects,” government-run NTPC said in a statement.
Flue Gas Desulphurization (FGD) units cut emissions of sulphur dioxides – which are linked to lung diseases and acid rain – from coal-fired power plants.
Japan Bank for International Co-operation (JBIC) will provide 60% of the loan under its Global Action for Reconciling Economic growth and Environment preservation (GREEN) initiative, NTPC said in a statement.
Other Japanese commercial banks, including Sumitomo Mitsui Banking Corp, San-In Godo Bank Ltd and Nanto Bank Ltd, will extend the rest of the loan amount.
India has a phased plan for plants to comply with emission norms, with deadlines extending to the end of December 2022.
