JBIC and NREL Join Forces: A Milestone in Supporting India's Renewable Energy Ambitions

The Japan Bank for International Cooperation (JBIC), led by Governor Nobumitsu Hayashi, has inked a landmark deal with NTPC Renewable Energy Limited (NREL) of India, marking a significant milestone in supporting renewable energy projects within the country.

The agreement, signed on March 26, involves a loan of up to JPY15 billion, with JBIC directly contributing JPY9 billion. This funding initiative is further bolstered through collaborative efforts with Sumitomo Mitsui Banking Corporation and the Bank of Fukuoka, Ltd., with JBIC providing guarantees for the portions financed by these private entities.

NREL, operating under NTPC Limited – India’s premier state-owned power entity, will utilize these funds to expand its renewable energy ventures, aligning with JBIC’s GREEN operations initiative.

This financial backing comes at a critical juncture, following India’s 2021 pledges to achieve energy self-sufficiency by 2047 and carbon neutrality by 2070. These commitments were reiterated at the COP26 summit, highlighting a strategic shift towards non-fossil fuel-based energy sources, targeting a 50% share in electric power generation by 2030.

This target is part of India’s broader commitment to combating climate change, as outlined in its Nationally Determined Contribution under the Paris Agreement, including the promotion of renewable energy and electric vehicles (EVs).
By supporting NREL’s renewable energy projects, JBIC is actively contributing to India’s environmental goals and the global fight against climate change, reaffirming its commitment to environmental preservation through strategic investments and risk management, fostering a sustainable future.

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Capt. Raj Adhikary

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