Power Grid Corporation of India (POWERGRID) has signed a loan agreement of up to ¥80 billion (~$493.5 million) with the Japan Bank for International Cooperation (JBIC).

The financing includes a ¥48 billion (~$296 million) contribution from JBIC, with the remaining funds co-financed by Sumitomo Mitsui Banking Corporation, Kansai Mirai Bank, Kiraboshi Bank, and The Joyo Bank.

JBIC will also provide a guarantee for the portion financed by the participating private financial institutions.

The financing will support the development of POWERGRID’s high-voltage direct current (HVDC) transmission project in India.

According to JBIC, the financing will be provided under its Global Action for Reconciling Economic Growth and Environmental Preservation operations.

The transmission project involves transmitting electricity from the Khavda Renewable Energy Park in Gujarat to Nagpur in Maharashtra.

The Japanese bank said that expanding transmission infrastructure connecting renewable energy generation sites with demand centers will be necessary to support India’s goal of 500 GW of renewable energy by 2030. It added that the government plans to develop 191,000 circuit kilometers of transmission lines by 2032.

JBIC said the financing aligns with Japan’s Partnership on Wide Energy and Resources Resilience Asia launched in April of this year to strengthen energy supply chain resilience across Asia.

According to JBIC, support for the project is also expected to promote the adoption of HVDC equipment in India and to create future business opportunities for Japanese companies supplying HVDC equipment.

Last year, JBIC signed a shareholders’ agreement with Osaka Gas to invest in a joint venture between Osaka Gas and Mumbai-based Clean Max Enviro Energy Solutions.

In the same year, it signed an agreement to establish a JPY120 billion (~$770.64 million) credit line with the government-owned Power Finance Corporation.

At a panel discussion at the Mercom India Renewables Summit 2026, industry executives said demand for transformers, gas-insulated switchgear, shunt reactors, power converters, and other critical transmission components is rising as India localizes supply chains and invests in grid modernization.