Green Growth in India: PFC Secures ₹3,500 Cr Loan from JBIC

Power Finance Corporation (PFC) has signed a loan agreement worth ¥60 billion (approximately ₹3,500 crore) with the Japan Bank for International Cooperation (JBIC) to accelerate the development of clean energy projects in India.

The financing is part of JBIC’s “Global Action for Reconciling Economic Growth and Environmental Preservation (GREEN)” initiative and is being co-financed by Sumitomo Mitsui Banking Corporation (SMBC) and other Japanese banks. The agreement was formalised in Tokyo, with PFC Chairperson & Managing Director Parminder Chopra and JBIC Governor Nobumitsu Hayashi in attendance. A parallel side agreement was also signed with SMBC, represented by Rajiv Kannan, Head of SMBC’s India Division.

A portion of the loan will support Assam Bio Ethanol’s second-generation bio-ethanol and chemicals plant, which will utilise bamboo as feedstock—a significant step toward sustainable fuel alternatives and energy self-reliance in India.

PFC, operating under the Ministry of Power, is India’s largest government-owned non-banking financial company (NBFC) by asset size and plays a key role in financing India’s energy transition.

News by Rahul Yelligetti.