State-run power giant NTPC has announced that its green energy arm, NTPC Renewable Energy Ltd (NTPC REL) has signed its first green term loan agreement of Rs 500 crore with the Bank of India. The green term loan agreement is for its two solar projects in Rajasthan and Gujarat.
According to the company’s statement, NTPC REL has signed its Green Term Loan agreement of Rs 500 crores at a very competitive rate with a tenure of 15 years with Bank of India, for its 470 megawatts (MW) solar project in Rajasthan and 200 MW solar project in Gujarat.
A green loan is a type of loan instrument that enables borrowers to finance projects that have an environmental impact.
NTPC REL, is a 100 percent subsidiary of NTPC Ltd, currently has a renewable project portfolio of 3,450 MW of which 820 MW projects are under construction and 2,630 MW projects have been won for which PPAs (power purchase agreements) are pending to be executed. By 2032, the company plans to have 60 gigawatts (GW) capacity through renewable energy sources constituting nearly 45 percent of its overall power generation capacity.
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