Tenders: Germany supports Madhya Pradesh and REC Ltd projects
German Development Bank – KFW (Kreditanstalt für Wiederaufbau) has signed two loans to support Madhya Pradesh’s and REC Ltd’s energy projects, further strengthening the Indo-German Bilateral Partnership.
KFW is lending Euro140 million to help reduced interest loan and Euro2 million grant for Energy Reform Programme in Madhya Pradesh.
It is also making available ODA (official development assistance) term loan of US$169.5 million to REC Ltd for part financing of innovative Solar PV Technology based generation Projects in India at competitive interest rates.
The Madhya Pradesh project comprises of 2 components, implementation of smart meters and Advanced Metering Infrastructure (AMI). It also covers separation of agriculture and non-agriculture feeders.
The project will contribute to a more stable, secure and climate and environmentally friendly energy supply in India by upgrading and strengthening distribution networks in Madhya Pradesh. It will contribute to an effective, technically and economically efficient as well as socially and ecologically sustainable energy supply.
KfW’s loan for REC is under Indo-German Bilateral Partnership in accordance with the approval granted by Department of Economic Affairs, Ministry of Finance.
Proceeds of ODA loan will be deployed for part financing of innovative Solar PV Technology based generation Projects in India at competitive interest rates.
This is the fifth credit line signed between REC Limited and KfW for financing of Power Sector Projects and third credit line for financing of Renewable Energy Projects.
REC is continuously re-shaping its policies to align with market requirements and developing financial solutions and mechanisms that create scalable and effective ways of channelizing both Private and Public investments in the Renewable Energy space.
As a testament to this, REC offers the lowest interest rates to renewable energy sector among all the segments being financed by the corporation, said the Finance and Power Ministries on 23 Dec 2021. fiinews.com
