Rural Electrification Corporation (REC) Limited has signed an agreement with KfW Development Bank for availing official development assistance (ODA) term loan of $169.5 million under Indo-German Bilateral Partnership in accordance with the approval granted by the Department of Economic Affairs, Ministry of Finance The proceeds of the ODA loan would be used to partially finance solar PV technology-based power projects in India at low-interest rates. This is REC Limited’s fifth credit line with KfW for power sector projects and the third credit line for renewable energy projects.
REC is constantly reshaping its policies to meet market demands and establishing financial solutions and structures to channel both private and public investments in the renewable energy space. As a demonstration of this, among all the segments REC finances, the renewable energy industry has the lowest interest rates.
Given its ambitious renewable energy targets and favourable business environment, India has become a key destination for foreign investments. According to Renewable Watch Research, in the past five years, over 100 foreign investment deals have taken place. The cumulative amount of these investments is around $16,000 million (excluding select deals with undisclosed investments).