Loan for Manufacturing and Sales of Thermal Power Generation Facilities in India
Supporting Japan-India Joint Venture Power Businesses

• Region: Asia
• Infrastructures
• Environment
• Manufacturing and Services
• Overseas Investment Loans

1. The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)^*1 signed today a loan agreement for an aggregate amount of up to 90 million US dollars with Toshiba JSW Turbine and Generator Private Limited (TJTG), a joint venture company established by Toshiba Corporation (Toshiba) and two Indian firms - JSW Energy Limited and JSW Steel Limited. This is a loan to finance a concrete project under JBIC's Leading Investment to Future Environment (LIFE) Initiative^*2.
    
2. In this business project, TJTG, in which Toshiba has a majority equity share, will manufacture high-efficiency, high-performance steam turbines and power generators by using advanced supercritical pressure technology^*3 provided by Toshiba to sell them in the Indian market. The proceeds of the loan will primarily be used for the construction of a manufacturing facility in Chennai, Tamil Nadu. It will become Toshiba's first overseas production facility of steam turbines and power generators.
    
3. The Indian economy has continued to grow at a pace of 6-9% in recent years. While this has increased power demand, lagging growth in the power supply is causing chronic power shortages. The 11th five-year economic plan drawn up by the Government of India envisages large-scale expansion in the capacity of the power sector. There are especially high expectations for building supercritical coal-fired power plants that can achieve a stable power supply using the abundance of coal in India while decreasing the burden on the environment. Under these circumstances, this business project by TJTG is expected to contribute to removing bottlenecks in India's power infrastructure and improving the country's investment climate and economic growth.
    
4. JBIC has provided a broad range of support for Japanese trade and investment activities in India, including a direct loan to this joint venture business project between a Japanese firm and an Indian partner. JBIC is prepared to provide financial support to overseas business operations of Japanese firms that have advanced technologies, including those in fast-growing markets like India.

Note

1. *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
2. *2 See Information on March 23, 2009, "Establishing Leading Investment to Future Environment (LIFE) Initiative". This project is categorized in the LIFE initiative as an environmental investment for clean power generation.
3. *3 Supercritical pressure technology increases the efficiency of power generation by increasing the pressure and temperature of steam sent from the boiler to the power turbine. The adoption of this technology will reduce fuel consumption and carbon dioxide emissions compared with conventional coal-fired power generation.