PFC Signs 120 Billion JPY Loan Agreement with JBIC for Renewable Energy Projects in India.

Banking & Finance

In January 2025, Power Finance Corporation Limited (PFC), based in New Delhi, signed a 120 billion Japanese Yen (JPY) loan agreement with Japan Bank for International Cooperation (JBIC) to support Renewable Energy (RE) projects in India.


      - The loan agreement includes a contribution of JPY 72 billion (Rs 40.04 billion) from JBIC, with the remaining amount being provided by commercial banks.

      - The loan is aimed at supporting India's commitment to achieving net-zero carbon emissions and transitioning to cleaner energy sources.

      - The agreement was signed by Parminder Chopra, Chairman and Managing Director (CMD) of PFC, and Ogawa Kazunori, Senior Managing Director of JBIC, in Japan.

Main Point :-   (i) The long-term loan has a tenure of up to 20 years and is part of JBIC's 'Global Action for Reconciling Economic Growth and Environmental Preservation' (GREEN) initiative.

      (ii) This agreement marks JBIC's largest green financing deal with any Indian company, underscoring its commitment to sustainable energy projects in India.

(iii) PFC will use the loan to fund energy projects, including RE, next-generation energy supply, and energy-efficient power generation, contributing to India's goal of achieving 50% electric power generation from non-fossil fuel-based sources by 2030.
About Power Finance Corporation (PFC)

CMD : Parminder Chopra
Headquarters : New Delhi
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