The Japan Bank for International Cooperation ( JBIC ) has signed a loan agreement amounting to 80 billion yen ( US$496 million ) with Power Grid Corporation of India Limited ( PGCIL ), India's state-owned transmission company.

The green loan, of which JBIC is contributing 48 billion yen, is co-financed with Sumitomo Mitsui Banking Corporation, Kansai Mirai Bank, Limited, Kiraboshi Bank, and The Joyo Bank. JBIC will also provide a guarantee for the portion co-financed by the private financial institutions.

The loan is intended to provide PGCIL with the funds necessary for a high-voltage direct current ( HVDC ) transmission project in India as part of its “GREEN operations”. This refers to the company’s initiatives aimed at integrating renewable energy into the national grid, decarbonizing its own operations, and supporting India's clean energy transition.

It will also generate future business opportunities for Japanese companies in HVDC equipment supply and help establish a stable and sustainable supply chain. The project involves transmitting electricity from the Khavda Renewable Energy Park in the state of Gujarat, western India, to Nagpur in the state of Maharashtra, central India.

India faces an urgent need to reduce dependence on energy imports and address climate change. In response, the Indian government has positioned the expansion of renewable energy as a cornerstone policy, not only for reducing greenhouse gas emissions but also for enhancing energy self-sufficiency by lowering reliance on fossil fuel imports.

It has set a goal of increasing renewable energy capacity to 500 gigawatts by 2030. To achieve this target, transmission networks linking power generation sites with consumption areas are essential, and the government plans to develop 191,000 circuit kilometres of transmission lines by 2032.