Green financing: PFC, JBIC tie up for Rs 3,500 cr loan; Assam bio-ethanol project gets boost

Power Finance Corporation (PFC) and Japan Bank for International Cooperation (JBIC) have signed a loan agreement worth 60 billion Japanese Yen (about Rs 3,500 crore) to fund clean energy projects in India.PFC said in a statement that the deal not only strengthens economic ties between India and Japan but also marks a crucial step in advancing sustainable development, PTI reported.The financing, under JBIC’s Global Action for Reconciling Economic Growth and Environmental Preservation (GREEN) initiative, is supported through co-financing from Sumitomo Mitsui Banking Corporation (SMBC) and other Japanese banks.The loan agreement was signed in Tokyo on Friday by PFC CMD Parminder Chopra and JBIC Governor Nobumitsu Hayashi. In addition, a side agreement was executed with SMBC in the presence of Rajiv Kannan, Managing Executive Director, Head of India Division, SMBC.PFC said a part of the loan will primarily support the establishment of Assam Bio Ethanol Pvt Ltd’s second-generation bio-ethanol and chemicals plant in Assam. The project, which uses bamboo as feedstock, represents a significant stride toward cleaner energy and self-reliance.Power Finance Corporation Ltd, India’s largest government-owned non-banking financial company (NBFC) based on asset size (consolidated), operates under the administrative control of the Ministry of Power and serves as the principal financial institution for the country’s power sector.