The loan will be used to fund supplies of power equipment by American firms. U.S. Exim Bank Chairman James H. Lambright and Power Finance Director of Finance and Financial Operations Satnam Singh signed the agreement.

PFC is a government-controlled company that focuses on financing and helping in integrated development of the power and associated sectors. It is also the main agency for implementing the Ultra Mega Power Projects recently sanctioned by the government to augment power generation; each of these projects has a capacity of 4,000 MW.

The U.S. Exim Bank recently approved an India infrastructure facility that will support U.S. exports to Indian projects in sectors such as power and renewable energy generation.

The borrowers of PFC will use the facility for project-related imports from the United States during the next two years. The Power Finance Corp. is also the main agency for implementing the UMPPs.