New Delhi: India's largest power producer NTPC Limited has entered into a foreign currency loan agreement with Japan Bank for International Co-operation (JBIC) on Wednesday for JPY 50 billion (approximately USD 482 million or Rs 3,582 crore) for cutting down pollution from its thermal power plants across the country. This is the first funding raised by NTPC Limited under JBIC's GREEN or Global Action for Reconciling Economic growth and Environment preservation initiative.
The loan proceeds shall be utilized by NTPC for funding its CAPEX for Flue Gas Desulphurization (FGD) and renewable energy (RE) projects. FGD substantially reduces the SOx emission in the flue gases of thermal power plants and is a critical step towards environmental sustainability. JBIC will provide 60 percent of the facility amount and the balance will be given by commercial banks (viz., Sumitomo Mitsui Banking Corporation, the Bank of Yokohama Limited, the San-In Godo Bank Ltd., the Joyo Bank Ltd. and The Nanto Bank Ltd.), under JBIC guarantee.
The loan agreement has been signed by NTPC Limited's Director (Finance) Anil Kumar Gautam and TANIMOTO Masayuki, JBIC's Managing Executive Officer (Global Head of Infrastructure & Environment Finance Group) through video conferencing.
The present installed capacity of NTPC Limited is 6,2,910 MW (including 11,755 MW through JVs and subsidiaries), comprising of 70 NTPC stations (24 coal-based stations, 7 combined cycle gas and liquid fuel based stations, 1 hydro based station, 1 wind-based station), 25 Joint Venture stations (9 coal-based and 4 gas based) and 12 renewable energy projects. The company aims to achieve a total installed capacity of 130 GW by 2032.
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