- Region: Asia
- Infrastructures
- Environment
- Untied Loans
- Guarantees
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The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on March 27 a loan agreement amounting to up to JPY15 billion, of which JBIC's portion is JPY9 billion, with SJVN Limited (SJVN), India's state-owned company. The loan is co-financed with MUFG Bank, Ltd. and the San-in Godo Bank, Ltd. JBIC will also provide a guarantee for the portion co-financed by the private financial institutions.
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SJVN is a state-owned company under the Ministry of Power, invested in by, inter alia, the Government of India and the State of Himachal Pradesh. It implements hydropower generation projects, renewable energy power generation projects, and power transmission projects. The loan is provided as part of JBIC's GREEN operations*1, and it is intended to provide SJVN with the funds necessary for solar power generation projects in India that will be implemented by SJVN or its subsidiaries.
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The economic growth rate is high and the demand for electric power is expected to grow in India, 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, pledging on the country's Independence Day in August 2021 that India would become "energy-independent" by 2047, and at COP26 in November 2021, committing to achieving carbon neutrality by 2070. Also, the Government of India aspires to achieve 50% cumulative electric power installed capacity 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, SJVN is participating in renewable energy projects, including solar power generation projects. JBIC supports the Government of India's and SJVN's initiatives that contribute toward global environmental preservation with the loan.
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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.
