Germany and India sign Rs 16 billion loan agreement to fund solar projects in rural areas

The Rural Electrification Corporation (REC) and German development bank KfW have signed a loan agreement of Rs 16 billion. The funds, which are to be leveraged by the private sector, will be used by REC to provide loans at low interest rates to solar power project developers. These funds will be utilised to set up a 200 MW solar capacity, which would provide clean energy to 270,000 households. In addition, KfW will provide a complementary grant of Rs 82.43 million to implement an environmental and social management solution. This is in line with the partnership between the two countries, under which Germany will disburse a total of Rs 80 billion until 2020 for the promotion of solar projects in India.

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