The Japan Bank for International Cooperation (JBIC) has signed a loan agreement with Power Grid Corporation of India Limited (PGCIL) to support one of India’s largest high-voltage direct current (HVDC) transmission projects. The agreement, signed on June 17, provides financing of up to JPY 80 billion, with JBIC contributing JPY 48 billion. The remaining amount is being co-financed by Sumitomo Mitsui Banking Corporation, Kansai Mirai Bank, Kiraboshi Bank, and The Joyo Bank. JBIC will also guarantee the portion financed by these private financial institutions.
The funding will be used for the development of an HVDC transmission system that will transport renewable energy from the Khavda Renewable Energy Park in Gujarat to Nagpur in Maharashtra. The transmission corridor is expected to play a key role in moving large volumes of clean electricity from one of India’s biggest renewable energy generation hubs to major demand centres.
India has been rapidly expanding its renewable energy sector as part of its efforts to reduce dependence on imported fossil fuels and lower greenhouse gas emissions. The country has set a target of achieving 500 GW of renewable energy capacity by 2030. To support this ambitious goal, the government plans to build around 191,000 circuit kilometres of transmission lines by 2032, enabling efficient evacuation and distribution of renewable power across the country.
Power Grid Corporation of India Limited, the country’s largest transmission utility and only state-owned transmission company, plays a central role in strengthening India’s electricity transmission network. The HVDC project supported by JBIC is considered one of the largest of its kind globally and is expected to enhance grid reliability while supporting the integration of large-scale renewable energy into the national power system.
JBIC said the project also aligns with Japan’s broader energy security and regional cooperation strategy. In April 2026, the Japanese government launched the Partnership on Wide Energy and Resources Resilience Asia (POWERR Asia) initiative to strengthen energy supply chain resilience across Asia. India is viewed as an important partner under this initiative because of its growing role in the Indo-Pacific region and its commitment to expanding renewable energy.
The project is also expected to create opportunities for Japanese companies involved in HVDC technology and equipment manufacturing. By supporting the expansion of advanced transmission infrastructure in India, the financing could encourage wider adoption of HVDC systems while strengthening long-term business partnerships between India and Japan.
JBIC stated that it will continue supporting projects that contribute to environmental sustainability, energy transition, and the development of resilient infrastructure through its financing and risk-sharing mechanisms.
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