The electric power distribution company, NTPC on Wednesday signed an agreement with Japan Bank for International Cooperation (JBIC) for a loan worth Rs 3,500 crore. The facility is extended under JBIC's Global Action for Reconciling Economic growth and Environment preservation (GREEN) for projects which ensure the conservation of the global environment.

As per the agreement, JBIC will provide 60% of the loan amount and the balance will be extended by commercial banks namely Sumitomo Mitsui Banking Corporation, Bank of Yokohama, San-In Godo Bank, Joyo Bank and Nanto Bank, under the JBIC guarantee, NTPC said.

"NTPC entered into foreign currency loan agreement with JBIC, the Japanese Government policy-based financial institution, for JPY 50 billion (approximately USD 480 million or ₹3,500 crore)," a company statement said.

The facility is extended under JBIC's Global Action for Reconciling Economic growth and Environment preservation (GREEN) for projects which ensure conservation of global environment.

The loan proceeds shall be utilized by India's largest power producer for funding its capex for Flue Gas Desulphurization (FGD) and renewable energy projects.

FGD substantially reduces sulphur oxide emission in the flue gases of thermal power plants and is a positive step towards environmental sustainability.

Signed over a video conference, this is the first loan for NTPC under JBIC’s GREEN operations in India, it claimed.