POWERGRID signs green loan agreement with SMBC

Power Grid Corporation of India Limited, a ‘Maharatna’ PSU under the Ministry of Power, signed a landmark green loan agreement with Sumitomo Mitsui Banking Corporation (SMBC) on December 31, 2024 at GIFT City, Gandhinagar, Gujarat. The pact underscores the public sector company’s pivotal role in the country’s renewable energy transformation. 

This facility, denominated in the Japanese yen (JPY) for a US dollar equivalent of 200 million with a green shoe option of $150 million, highlights the strategic collaboration between POWERGRID and Sumitomo Mitsui Banking Corporation to develop critical infrastructure for renewable energy evacuation and integration into the national grid.  

The agreement was signed in the presence of G Ravisankar, Director (Finance), POWERGRID, LK Khajkumar, ED (Corporate Planning), POWERGRID, and other senior officials of SMBC and POWERGRID.

POWERGRID ED (Finance) Ashwani Kumar Gupta, SMBC Managing Director and Head-India Offshore Banking Sriram Kumondur, and SMBC Gift City Branch Head Manoj Kaushik signed the agreement on behalf of the companies. 

The green loan emphasises POWERGRID’s commitment to supporting the country’s energy transition goals while adhering to the highest environmental, social, and governance (ESG) standards. The funds will be instrumental in facilitating renewable energy projects, enhancing grid reliability, and promoting sustainable development across the country.

In line with its commitment to sustainable development, POWERGRID has integrated ESG principles into its core business operations and adopted ESG vision and targets. POWERGRID is actively working towards achieving its goals of net zero emissions by 2047, 50 per cent of energy consumption from renewable sources by 2025, zero waste to landfill by 2030, and being net water positive by 2030.

A leading global financial institution, SMBC is one of the largest Japanese banks by assets, with over 2,38,700 billion Japanese yen in total assets and strong credit ratings across their global integrated network spanning 39 countries and territories. 

As of December 15, POWERGRID has commissioned and operating 280 Sub-stations and more than 1,78,975 ckm transmission lines and 5,45,961 MVA of transformation capacity. 

With the adoption of the latest technological tools and techniques, enhanced use of automation and digital solutions, POWERGRID has been able to maintain average transmission system availability of 99.80 per cent.