This project is one of the world’s largest HVDC (high voltage direct current) projects and is an important initiative underpinning the government’s renewable energy goals, JBIC said in a statement.
State-run Power Grid Corporation of India has secured a green loan of JPY 80 billion (Roughly ₹4,700 crore) from Japan Bank for International Cooperation (JBIC) for financing of the Khavda-Nagpur HVDC transmission project.The financed project involves transmitting electricity from the Khavda Renewable Energy Park in Gujarat to Nagpur in Maharashtra highlighting the strategic collaboration between Power Grid and JBIC to develop critical infrastructure for renewable energy integration. The loan agreement was signed on June 17, 2026.The green loan emphasises Power Grid’s continued commitment to supporting India’s energy transition goals while adhering to the environmental, social, and governance (ESG) standards, the Maharatna company said.In line with its commitment to sustainable development, Power Grid has integrated ESG principles into its core business operations and adopted ESG vision and targets. It is also actively working towards achieving its goals of net zero emissions by 2047, zero waste to landfill by 2030, and being net water positive by 2030, the transmission behemoth added.This project is one of the world’s largest HVDC (high voltage direct current) projects and is an important initiative underpinning the government’s renewable energy goals, JBIC said in a statement.Climate changeIndia faces an urgent need to reduce dependence on energy imports and address climate change. In response, the government of India has positioned the expansion of RE as a cornerstone policy, not only for reducing greenhouse gas emissions but also for enhancing energy self-sufficiency by lowering reliance on fossil fuel imports, it added.Considering the current situation in the Middle East, the government of Japan launched the “Partnership on Wide Energy and Resources Resilience Asia (POWERR Asia)” in April 2026 and is enhancing cooperation with Asian countries to strengthen the resilience of energy supply chains, JBIC said.India is not only a leading Global South country but also a like-minded partner in the Quad that plays an important role in realizing the Free and Open Indo-Pacific (FOIP), it added.In addition, Prime Minister Narendra Modi has indicated the need to strengthen renewable energy supply systems and secure alternative energy sources in light of disruptions to fuel supplies amid the situation in the Strait of Hormuz. The loan will support the development of core infrastructure in the country, thereby contributing to strengthening and diversifying energy supply systems in Asia.As on May 31, 2026, Power Grid owns and operates 185,750 (circuit km) ckm transmission lines and 291 sub-stations with power transformation capacity of 630,516 MegaVolt Amperes (MVA).The company’s EHV (extra high voltage) power transmission network is spread across length and breadth of India and includes cross-border interconnections.With the adoption of latest technological tools and techniques, enhanced use of automation and digital solutions, Power Grid has maintained the availability of its transmission system consistently above 99.5 per cent. Expanding its business beyond transmission, the CPSU has also diversified into consultancy and telecommunication businesses.Published on July 9, 2026
