PFC inks ₹3,500 cr clean energy loan deal with Japan’s JBIC

1 Sep 2025 , 11:44 AM

Power Finance Corporation Ltd (PFC) has entered into a major loan agreement with the Japan Bank for International Cooperation (JBIC), securing 60 billion Japanese Yen (approximately ₹3,500 crore) to finance clean energy projects in India.

The pact, signed on Friday (August 28) in Tokyo, was formalised by Parminder Chopra, Chairman & Managing Director of PFC, and Nobumitsu Hayashi, Governor of JBIC.

The loan has been extended under JBIC’s flagship initiative, Global Action for Reconciling Economic Growth and Environmental Preservation (GREEN). As part of the arrangement, Sumitomo Mitsui Banking Corporation (SMBC) and other Japanese banks are also contributing through a co-financing structure.

Alongside the main agreement, a side agreement with SMBC was also executed, in the presence of Rajiv Kannan, Managing Executive Director and Head of India Division at SMBC.

PFC highlighted that a portion of the funds will be utilised for Assam Bio Ethanol Pvt Ltd’s second-generation bio-ethanol and chemicals plant in Assam. The plant, which will use bamboo as its primary feedstock, is expected to be a landmark project in India’s renewable energy drive and a step toward energy self-reliance.

The deal not only enhances India-Japan economic cooperation but also underlines a joint commitment to sustainable development and clean energy transition, according to the company’s statement.

PFC, which functions under the administrative control of the Ministry of Power, is India’s largest government-owned non-banking financial company (NBFC) by asset size on a consolidated basis. It plays a pivotal role as the principal financial institution for India’s power sector, supporting conventional as well as renewable energy financing.

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