India's Clean Energy Drive: PFC and JBIC Join Hands

By Jetender Attri

In a significant milestone for India's power sector and sustainable development, Power Finance Corporation (PFC), a Maharatna PSU and leading NBFC, has signed a landmark loan agreement with the Japan Bank for International Cooperation (JBIC) for JPY 60 billion. The loan will finance the establishment of Assam Bio Ethanol Pvt Ltd's pioneering second-generation bio-ethanol and chemicals plant in Assam.

Strengthening India-Japan Ties

The loan agreement, signed in Tokyo, Japan, underscores the strong economic ties between India and Japan. The deal was inked by Mrs. Parminder Chopra, CMD, PFC, and Mr. Nobumitsu Hayashi, Governor, JBIC, in the presence of senior officials from both organizations. The loan is part of JBIC's "Global action for Reconciling Economic growth and Environmental preservation (GREEN)" initiative, with co-financing support from Sumitomo Mitsui Banking Corporation and other Japanese banks.

Promoting Sustainable Development

The Assam Bio Ethanol Pvt Ltd project utilizes bamboo as feedstock, marking a significant stride toward cleaner energy and self-reliance. PFC's involvement in this project demonstrates its commitment to driving India's energy transition and promoting sustainable development. With its innovative financial solutions, industry collaborations, and strong partnerships, PFC plays a pivotal role in financing, promoting, and accelerating the development of India's power and allied infrastructure.

- Loan amount: JPY 60 billion
- Project: Assam Bio Ethanol Pvt Ltd's second-generation bio-ethanol and chemicals plant in Assam
- Feedstock: Bamboo
- Initiative: JBIC's "GREEN" initiative
- Co-financing: Sumitomo Mitsui Banking Corporation and other Japanese banks

"PFC's partnership with JBIC and Sumitomo Mitsui Banking Corporation underscores our commitment to driving India's energy transition and promoting sustainable development. This project is a testament to our innovative financial solutions and strong partnerships in the power and allied infrastructure sector." - Mrs. Parminder Chopra, CMD, PFC

The PFC-JBIC loan agreement marks a significant milestone in India's power sector and sustainable development. The project is expected to contribute to the country's energy security, reduce greenhouse gas emissions, and promote economic growth. PFC's role in financing this project demonstrates its commitment to supporting India's energy transition and promoting sustainable development.