Mitsubishi UFJ Financial Group (MUFG) and Sumitomo Mitsui Banking Corporation (SMBC) have extended a combined loan of 7.517 billion rupees (₹751.7 crore, equivalent to about 13.1 billion yen) to "Bijapur Wind," a 100MW-scale wind power project under construction in Karnataka, India. The move by Japan's two megabanks to enter India's renewable energy market in earnest is becoming clear.
On March 26, 2026, MUFG and SMBC announced financing for a 100MW wind power project in the Bijapur area of Karnataka, run by the Indian subsidiary of Philippine renewable energy company ACEN Corporation. Total financing came to about 7.517 billion rupees (₹751.7 crore / about 13.1 billion yen). India has set a national target of reaching 500GW of renewable energy by 2030, and large-scale wind and solar development projects are underway across the country. Japanese-affiliated companies with a presence in India now number 1,434 (as of October 2024), with cumulative investment exceeding 5 trillion yen.
Financing for India's renewable energy sector by Japanese megabanks goes beyond mere financial support — it also serves as a "safety valve for entering India" for Japanese companies that follow. As Japanese banks with a track record in project finance put down roots locally, entry barriers come down across the entire related industry, including equipment makers, EPC contractors, and operations and management companies. There is also an expectation that public-private cooperation in the energy sector will be further strengthened under the "Japan-India Vision for the Next Decade" framework promoted by both countries, and similar deals are expected to increase going forward.
1. Regularly watch renewable energy tender information published by SECI (Solar Energy Corporation of India) and NTPC, so as not to miss the timing for entry. 2. MUFG and SMBC are active in project finance for Indian infrastructure deals, and coordinating with financial institutions from the business-planning stage makes it easier to map out fundraising. 3. For Japanese manufacturers of wind and solar components and control systems, this is an excellent time to consider setting up a joint venture with a local Indian partner.
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