|SBI chairperson A Bhattacharya|
DURING the historic Japan visit by Prime Minister Narendra Modiu, showing a sign of growing financial collaboration between India and Japan, State Bank of India (SBI) and Japan Bank for International Cooperation (JBIC) on...September 1 signed a loan agreement to set up an export credit line for a power plant in Uttar Pradesh.
The loan to be co-financed by the Bank of Tokyo-Mitsubishi UFJ Ltd. (BTMU) will bring the total co-financing amount to JPY 13.5 billion ($21 million), the statement issued by SBI said.
This loan will be utilised by Meja Urja Nigam Private Ltd. (MUNPL) to finance procurement of steam turbine generator equipments from a Japan company and its subsidiary in India to construct a super critical pressure coal-fired 1320 MW (660MW X 2 units) power plant in Meja, Uttar Pradesh.
MUNPL is a joint venture equally invested by National Thermal Power Corporation Ltd (NTPC) and Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd.
The pact was inked by SBI chairperson Arundhati Bhattacharya and JBIC Governor Hiroshi Watanabe in Tokyo.
"India has a strong appetite for infrastructural development and I see a greater role for JBIC in supporting the Indian commercial banks and infrastructure companies," Bhattacharya said on the occasion.
She assured the JBIC of all support and urged it to look at India as a "land of unique opportunities".
"Today's agreement with JBIC is a landmark agreement in this direction and such large-scale funding will benefit all the parties involved," she added.This is the third such occasion that India's largest lender has taken part with JBIC in a project funding.