Signing Loan Agreements with ICICI
Supporting Japanese Export of Thermal Power Generation Equipment, as well as Renewable / Energy Eficiency Projects in India

  • Area: Asia
  • Infrastructures
  • Environment

Supercritical pressure coal-fired thermal power plant being built in Nigrie

JBIC signed two loan agreements with ICICI Bank Limited (ICICI), One of the largest private sector banks in India. one is a bank-to-bank loan to finance the export of thermal power generation boiler / steam turbine sets to India, and the other is an untied loan to finance renewable energy, energy efficiency and other environment-related projects in India.
In the thermal power generation equipment export project, two joint venture companies, established primarily by Larsen & Toubro Limited—one of the largest construction and heavy machinery manufacturing companies in India—and Mitsubishi Heavy Industries, Ltd. (MHI), fabricate supercritical pressure boiler / turbine sets manufactured by MHI and sell them to an Indian corporation, Jaiprakash Power Ventures Limited, which constructs and operates a thermal power plant. JBIC’s export financing, which reached the aggregate amount of 15.3 billion yen, was cofinanced with a private financial institution. The fast-paced growth in the Indian economy in recent years has caused chronic power shortages, and eliminating this bottleneck in power generation infrastructure is an urgent issue. In this context, there are growing expectations for supercritical pressure coal-fired thermal power generation, which can supply stable power by making use of the country’s abundant coal resources.
In the meantime, the untied loan is the first loan provided in GREEN operations for the Asian region*1. The loan, totaling 200 million dollars and cofinanced with a private financial institution, will help reduce greenhouse gas (GHG) emissions and advance the Indian government’s environmental policy. It is also expected to provide opportunities for advanced Japanese environmental technologies to make their way into India, thereby helping vitalize the Japanese economy.


Note
  1. *1GREEN (Global action for Reconciling Economic growth and ENvironmental preservation) operations were instituted, pursuant to the revision of the Japan Finance Corporation Act on March 31, 2010. GREEN operations aim to offer increased and enhanced support to the overseas business for preserving the global environment, such as preventing global warming, while mobilizing funding from the private sector.
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