Power Grid signs green loan agreement with SMBC for renewable energy infrastructure

New Delhi: Power Grid Corporation of India Limited (Power Grid), a Maharatna PSU under the Minstry of Power, has taken a significant step toward bolstering India’s renewable energy infrastructure by signing a green loan agreement with Sumitomo Mitsui Banking Corporation (SMBC). The landmark deal was finalized on Tuesday at GIFT City, Gandhinagar, Gujarat, marking a milestone in India’s transition to sustainable energy.

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The facility, denominated in Japanese Yen (JPY) for a US Dollar equivalent of $200 million, includes a greenshoe option for an additional $150 million. This agreement highlights a strategic collaboration aimed at developing critical infrastructure to evacuate and integrate renewable energy into the national grid. The funds will support projects designed to enhance grid reliability and promote sustainable development.

The signing ceremony was attended by senior officials from both organizations, including G. Ravisankar, Director (Finance), Power Grid, and LK Khajkumar, Executive Director (Corporate Planning), Power Grid. Representing Power Grid and SMBC in the formal agreement were Ashwani Kumar Gupta, Executive Director (Finance), Power Grid, and Sriram Kumondur, Managing Director & Head, India Offshore Banking, SMBC, alongside Manoj Kaushik, Branch Head, SMBC, GIFT City.

This green loan underscores Power Grid’s dedication to India’s energy transition goals while adhering to robust environmental, social, and governance (ESG) standards. The company has integrated ESG principles into its core operations, setting ambitious targets to achieve net zero emissions by 2047, derive 50 percent of its energy consumption from renewable sources by 2025, achieve zero waste to landfill by 2030, and become net water positive by 2030.

SMBC is one of Japan’s largest banks, with total assets exceeding ¥238,700 billion. Known for its strong credit ratings and extensive global network spanning 39 countries and territories, SMBC has established itself as a leading player in international finance.

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