Power Finance Corporation (PFC) has signed a loan agreement worth 60 billion Japanese Yen, or about ₹3,500 crore, with the Japan Bank for International Cooperation (JBIC). The agreement was concluded in Tokyo on Friday. PFC CMD Parminder Chopra and JBIC Governor Nobumitsu Hayashi signed the pact, as per news reports.
The loan comes under JBIC’s Global Action for Reconciling Economic Growth and Environmental Preservation (GREEN) initiative. The financing is co-supported by Sumitomo Mitsui Banking Corporation (SMBC) and other Japanese banks. A side agreement was also signed with SMBC in the presence of Rajiv Kannan, Managing Executive Director and Head of the India Division at SMBC.
Part of the loan proceeds will be used for Assam Bio Ethanol Pvt Ltd’s second-generation bio-ethanol and chemicals plant. The plant, located in Assam, will use bamboo as feedstock. It is positioned as one of the early projects in India to focus on this technology for cleaner fuel production.
Power Finance Corporation is India’s largest government-owned non-banking financial company (NBFC) based on asset size. It works under the Ministry of Power and acts as the main financial institution for the country’s power sector. The company has increasingly directed funds into renewable and alternative energy projects.
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The agreement highlights financial cooperation between India and Japan in the energy sector. It adds to ongoing efforts to bring in international funding for projects that support India’s transition toward sustainable energy sources.
As of August 29, 2025, 3:30 PM, Power Finance Corporation share price closed at ₹379.70, down 0.54%.
Through this pact, ₹3,500 crore will be made available to fund clean energy initiatives, with Assam’s bio-ethanol plant as a key beneficiary. The deal also shows continued collaboration between Indian and Japanese institutions in the power sector.
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Published on: Aug 30, 2025, 1:36 PM IST
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