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In a major boost to India's clean energy goals, Power Finance Corporation (PFC) has secured a loan agreement worth 60 billion Japanese Yen (approximately INR 3,500 crore) from the Japan Bank for International Cooperation (JBIC). The financing, secured under JBIC's Global Action for Reconciling Economic Growth and Environmental Preservation (GREEN) initiative, will support sustainable projects, including a pioneering second-generation bio-ethanol plant in Assam that uses bamboo as feedstock. The deal not only strengthens Indo-Japanese economic ties but also underscores a global commitment to advancing green infrastructure and self-reliance in the energy sector.
India's push toward a cleaner, more sustainable energy future received a significant financial boost with the announcement of a landmark loan agreement between Power Finance Corporation (PFC) and the Japan Bank for International Cooperation (JBIC). The deal, signed in Tokyo, secures INR 3,500 crore in financing for a range of green energy projects across India. Advertisement
The loan, extended under JBIC's Global Action for Reconciling Economic Growth and Environmental Preservation (GREEN) initiative, is supported by co-financing from Sumitomo Mitsui Banking Corporation (SMBC) and other Japanese banks. A key focus of the investment will be the pioneering bio-ethanol and chemicals plant of Assam Bio Ethanol Pvt Ltd, which aims to produce cleaner fuel using bamboo as its primary feedstock. This project is a crucial step towards reducing India's reliance on fossil fuels and promoting a sustainable local economy.
PFC, which is the largest government-owned non-banking financial company and the principal financial institution for India's power sector, views this as a vital step in its mission to support the country's ambitious energy transition goals. The loan agreement was formalized by PFC CMD Parminder Chopra and JBIC Governor Nobumitsu Hayashi, with a side agreement also executed with SMBC, highlighting a collaborative effort between the financial institutions of both countries.
The Assam bio-refinery, located near Numaligarh, is set to become the first of its kind in the country to use bamboo biomass for ethanol production. This innovative project is expected to create a robust supply chain that will not only provide a market for five lakh tonnes of green bamboo annually but also generate business opportunities worth an estimated INR 200 crore, benefitting over 30,000 rural households in the Northeast region.
Source- PTI
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