Japan will provide up to 80 billion yen (around $492 million) to support the building of a major electricity transmission project in India. This will be the first project under POWERR Asia, a new programme started by Japan to support clean energy projects across Asia. Construction of the project will be undertaken by the Power Grid Corporation of India Ltd. It will link the Khavda renewable energy park in Gujarat state to Nagpur in Maharashtra through a 1,200 km high-voltage direct current (HVDC) power transmission line. HVDC technology helps send electricity over long distances with less power loss. The project is expected to be completed by 2029 and will cost around 550 billion yen ($3.4 billion).
The funding will be led by the Japan Bank for International Cooperation (JBIC) along with Sumitomo Mitsui Banking Corp. (SMBC), Kansai Mirai Bank, and other lenders. The announcement is expected during the India-Japan Annual Summit, where Japanese Prime Minister Sanae Takaichi is meeting Prime Minister Narendra Modi in New Delhi.
During the summit, both countries are also expected to announce new plans to work together on green hydrogen, renewable ammonia, semiconductors, medicines, and stronger supply chains. They may also discuss a rupee-yen payment system to make trade between the two countries easier.
Japanese companies are likely to announce nearly $12.5 billion in investments through about 120 business agreements. The new power line will help India move clean electricity from renewable energy projects to different parts of the country. It will also strengthen India’s and Japan’s partnership in clean energy, technology, infrastructure, and economic security.
