JPY 60 billion loan for Assam bioethanol project, India-Japan cooperation finds

It highlights specific government-to-government agreements and private-sector initiatives aimed at building resilient supply chains and protecting strategic interests.

Who it concerns: The agreement involves the Governments of India and Japan, specifically ministries including MeitY, Ministry of Mines, Ministry of New and Renewable Energy, Ministry of Communications, and Ministry of Health and Family Welfare (India) and METI, MIC, and Ministry of Health, Labour and Welfare (Japan). It affects sectors including semiconductors, critical minerals, pharmaceuticals, clean energy, information and communication technology, and scientific research. Key private entities named include Renesas, Tokyo Electron, TATA Electronics, NEC, Reliance Jio, NTT, Adani Power, and various Japanese and Indian business federations (Keidanren, CII).

What was agreed

• Launch of the India-Japan Dialogue on Economic Security including Strategic Trade and Technology (first round in Nov 2024).
• Memorandum of Cooperation on India-Japan Semiconductor Supply Chain Partnership signed by MeitY and METI (July 2023).
• Memorandum of Cooperation in the field of Mineral Resources signed by Ministry of Mines (India) and METI (Japan) in August 2025.
• Joint Declaration of Intent on Clean Hydrogen and Ammonia issued by Ministry of New and Renewable Energy (India) and METI (Japan).
• Loan agreement up to JPY 60 billion signed by JBIC and Power Finance Corporation Limited for a bamboo-based bioethanol project in Assam.
• Contract for an AI data centre cluster in Hyderabad with an investment of INR 10,500 crores signed by NTT DATA, Neysa Networks, and the Government of Telangana.
• Renewal of the MoC on Digital Partnership 2.0 in 2025.
• Launch of the India-Japan AI Cooperation Initiative for joint research and LLM development.

Also in the document

• A loan agreement of up to JPY 60 billion was signed to support a bamboo-based bioethanol production project in Assam.
• An investment of INR 10,500 crores is committed for an AI data centre cluster in Hyderabad.
• Specific private sector projects include a semiconductor OSAT in Sanand, Gujarat by Renesas Electronics, and a rare earth refining project in Andhra Pradesh by Toyota Tsusho.
• A 400MW renewable energy portfolio in Karnataka is being developed through a co-investment partnership involving JBIC and Osaka Gas.