NHPC To Seek Japanese Banks Loan For Solar Power Expansion

State-owned hydropower plant, NHPC is in discussion with three of Japan’s biggest banks to fund its expansion into solar power, according to a media report on Thursday.

According to the report NHPC Finance Director, Rajendra Prasad Goyal underlined the hydropower company’s aim to borrow around USD 609 million in yen-denominated loans.

It said the director stated that the company is in talks with Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and the Japan Bank for International Cooperation for the loan.

Furthermore, the company expects yen-denominated debt to be cheaper than domestic loans, a critical move for the highly competitive solar market in India, where NHPC is building out 1.2 gigawatts of solar projects to widen its green energy portfolio, Goyal said as per media reports.

This is the first time in four years NHPC is looking forward to international borrowings.

Established in 1975, NHPC has almost 7 gigawatts of hydropower plants contributing to India’s hydropower generation.