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The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on March 28 a loan agreement amounting to up to JPY20 billion, of which JBIC's portion is JPY12 billion, with NHPC Limited (NHPC), India's state-owned hydro power company. The loan is co-financed with MUFG Bank, Ltd. and the Bank of Yokohama, Ltd. JBIC will also provide a guarantee for the portion co-financed by the private financial institutions.
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The loan is provided as part of JBIC's GREEN operations
*1, and it is intended to provide NHPC with the funds necessary for renewable energy projects in India.
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In India, the economic growth rate is high, and the demand for electric power is expected to grow. But at the same time, the country, which is the world's third largest emitter of CO2, has an urgent need to address climate change. Under these circumstances, the government of India is promoting such climate change actions as the introduction of renewable energy and the facilitation of the spread of EVs, and it pledged on the country's Independence Day in August 2021 that India will become "energy independent" by 2047, and at COP26 in November 2021, it committed to achieving carbon neutrality by 2070. Also, the government of India aspires to achieve 50% cumulative electric power generation from non-fossil fuel-based energy resources by 2030 as its Nationally Determined Contribution (NDC), an action plan to address climate change under the Paris Agreement.
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To achieve the goal of carbon neutrality set by the government of India, NHPC, as a state-owned power generation company, is developing solar power projects in addition to its core business of hydropower. JBIC supports the initiatives by the government of India and NHPC that contribute toward global environmental preservation with the loan to NHPC and the guarantee to the private financial institutions.
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As Japan's policy-based financial institution, JBIC will continue to financially support initiatives for global environmental preservation, by drawing on its various financial facilities and schemes and by performing its risk-assuming function.
