In September 2025, Power Finance Corporation Limited (PFC) secured a Rs 3,500 crore loan from Japan Bank for International Cooperation (JBIC) to back a major project in Assam. This initiative aims to support India’s National Policy on Biofuels, specifically targeting 20% ethanol blending in gasoline by 2025. Which company will directly benefit from this funding to set up a biofuel production and power generation plant in Golaghat district?

The correct answer is Assam Bio Ethanol Private Limited. In News PFC and JBIC signed a Rs 3,500 crore loan pact to fund Assam Bio Ethanol Private Limited (ABEPL) for establishing a biofuel production and power generation plant in Golaghat district, Assam. Key Points Power Finance Corporation Limited (PFC), Japan Bank for International Cooperation (JBIC) ink Rs 3,500 cr loan pact to fund clean energy projects in India The loan facility of Rs 3,500 crore (equivalent to 60 billion Japanese Yen) was extended by Japan Bank for International Cooperation (JBIC). The recipient, Power Finance Corporation Limited (PFC), will channel the loan to Assam Bio Ethanol Private Limited (ABEPL). ABEPL will set up a biofuel production and power generation plant in Golaghat district, Assam. The project directly supports India’s National Policy on Biofuels, aiming for 20% ethanol blending in gasoline (E20) by 2025. The plant will contribute to sustainable clean energy generation in Northeast India. This collaboration signifies an important step in Indo-Japanese cooperation for promoting renewable and green energy ventures in India. Additional Information India’s National Policy on Biofuels (2018, revised) focuses on enhanced use of renewable fuels including ethanol and biodiesel. Ethanol blending with gasoline helps reduce dependence on fossil fuels and curb greenhouse gas emissions. PFC is a leading non-banking financial company under the Ministry of Power, specializing in infrastructure finance. Established in - 1986 HQ - New Delhi Japan Bank for International Cooperation (JBIC) supports international sustainable projects with concessional financing. India is the world’s third-largest CO2 emitter, following China and the USA; enhancing biofuel capacity aids global climate goals.