JBIC signs JPY 80 billion loan agreement with PGCIL for HVDC project
The Japan Bank for International Cooperation (JBIC) has signed a loan agreement of up to JPY 80 billion with Power Grid Corporation of India Limited (PGCIL) to support a high-voltage direct current (HVDC) transmission project connecting the Khavda Renewable Energy Park in Gujarat to Nagpur in Maharashtra. The agreement follows PGCIL’s board approval in June to raise the loan from JBIC and participating financial institutions.
The loan agreement was signed on June 17. JBIC will provide JPY 48 billion, while the remaining amount will be co-financed by Sumitomo Mitsui Banking Corporation, Kansai Mirai Bank, Limited, Kiraboshi Bank, Ltd., and The Joyo Bank, Ltd. JBIC will also guarantee the portion financed by the private financial institutions.
Funding HVDC transmission project
The financing will support an HVDC transmission project that will transmit electricity from the Khavda Renewable Energy Park in Gujarat to Nagpur in Maharashtra. JBIC said the project forms part of its GREEN operations.
According to JBIC, the project is among the world’s largest HVDC transmission projects and is expected to strengthen India’s power transmission network while supporting the integration of renewable energy.
Supporting India’s renewable energy targets
India has set a target of achieving 500 GW of renewable energy capacity by 2030 as part of its efforts to reduce greenhouse gas emissions, improve energy security and lower dependence on imported fossil fuels.
To support this expansion, the Government of India plans to develop 191,000 ckm of transmission lines by 2032.
JBIC noted that PGCIL plays a central role in expanding the country’s transmission network and supporting the government’s renewable energy programme.
Part of Japan’s regional energy strategy
JBIC said the financing aligns with Japan’s Partnership on Wide Energy and Resources Resilience Asia (POWERR Asia), launched in April 2026 to strengthen energy supply chain resilience across Asia.
The institution said the loan will support the development of critical energy infrastructure in India while contributing to more diversified and resilient energy supply systems in the region.
JBIC also stated that the project is expected to promote the adoption of HVDC equipment in India and create future business opportunities for Japanese companies involved in HVDC equipment supply and related infrastructure.
Photo credit: JBIC