In September 2025, Power Finance Corporation signed a Rs 3,500 crore loan pact with Japan Bank for International Cooperation to fund a biofuel project by Assam Bio Ethanol Private Limited in Golaghat district, supporting India's E20 blending target. Which policy does this directly align with?

The correct answer is National Policy on Biofuels. In News PFC, JBIC ink Rs 3,500 cr loan pact to fund clean energy projects in India. Key Points Power Finance Corporation Limited received a loan of Rs 3,500 crore , equivalent to 60 billion Japanese Yen , from Japan Bank for International Cooperation. The funds are allocated to Assam Bio Ethanol Private Limited for establishing a biofuel production and power generation plant in Golaghat district of Assam. This initiative directly supports India's National Policy on Biofuels , which sets a target of 20% ethanol blending in gasoline, known as E20, by 2025. The project promotes clean energy by producing biofuels from biomass, reducing reliance on fossil fuels and cutting carbon emissions. Japan Bank for International Cooperation focuses on international financing for sustainable development projects aligned with host countries' green goals. Power Finance Corporation acts as a non-banking financial company specializing in power and infrastructure sector lending in India. India ranks as the world's third-largest emitter of carbon dioxide after China and the United States, making such projects vital for emission reduction. Additional Information Power Finance Corporation (PFC) finances power projects exclusively. Established - 1986 HQ - New Delhi National Policy on Biofuels 2018 allows ethanol from multiple feedstocks like sugarcane and grains to achieve blending targets. E20 blending reduces oil import bills and supports farmer income through feedstock procurement. JBIC provides concessional loans for climate-friendly projects under Japan's ODA framework. Assam focuses on biofuel hubs to utilize agricultural waste for energy production.