Power Finance Corporation Secures ¥60 Billion Loan from JBIC to Boost Clean Energy Projects

New Delhi, August 29 – Power Finance Corporation (PFC) has signed a loan agreement worth 60 billion Japanese Yen (approximately Rs 3,500 crore) with the Japan Bank for International Cooperation (JBIC). Under the loan agreement, JBIC will finance clean energy projects in India.

Strengthening India-Japan Energy Partnership

The agreement was signed in Tokyo on Friday by PFC CMD Parminder Chopra and JBIC Governor Nobumitsu Hayashi. It underscores deepening economic cooperation between India and Japan, with the aim of supporting sustainable growth.

The financing under the loan is part of JBIC’s Global Action for Reconciling Economic Growth and Environmental Preservation (GREEN) initiative. The facility is backed by co-financing from Sumitomo Mitsui Banking Corporation (SMBC) and other Japanese banks. Further, a side agreement was also executed with SMBC in the presence of Rajiv Kannan, Managing Executive Director and Head of India Division at SMBC.

Assam Bio-Ethanol Plant in Focus

A portion of the proceeds from the loan will go to Assam Bio Ethanol Pvt Ltd’s second-generation bio-ethanol and chemicals plant in Assam. The plant uses bamboo as feedstock and is positioned as a pioneering step in advancing cleaner fuels and reducing dependence on fossil resources.

PFC’s Role in India’s Energy Transition

PFC is India’s largest government-owned non-banking financial company (NBFC) by asset size. It plays a crucial role in financing the country’s power sector. The company is operating under the Ministry of Power, and has been increasingly channelling funds into renewable and sustainable energy projects to align with India’s long-term climate and energy security goals.

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