State-owned electricity giant NTPC said on Thursday that its branch NTPC Renewable Energy Ltd (NTPC REL) signed the first 500 crore yen green term loan agreement with Bank of India.
The green term loan agreement covers its two solar projects in Rajasthan and Gujarat.
NTPC REL signed its first highly competitive 500 crore green term loan agreement with a 15-year term with Bank of India on September 29, 2021 for its 470 MW solar project in Rajasthan and its 200 MW solar project in Gujarat, a company statement said.
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A green loan is a type of lending instrument that allows borrowers to finance projects with an environmental impact.
NTPC REL, a 100% subsidiary of NTPC Ltd, currently has a portfolio of renewable projects of 3,450 MW, of which 820 MW are under construction and 2,630 MW have been won for which PPAs (power purchase contracts) are pending execution.
NTPC had incorporated NTPC Renewable Energy Ltd with the Registrar of Companies, NCT of Delhi and Haryana on October 7, 2020, to undertake renewable energy business.
NTPC is taking various steps to make its energy portfolio greener by adding significant capacity from renewable energy sources.
By 2032, the company plans to have a capacity of 60 GW from renewable energy sources representing nearly 45% of its overall power generation capacity according to its official portal.