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INR 700 Crores for clean energy in rural development by German Development Bank | Asia Pacific

INR 700 Crores for clean energy in rural development by German Development Bank

To promote development of renewable energy in India, the German Government owned development bank KfW has signed a Loan Agreement worth EUR 100 million (approximately INR 700 Crores) and a Financing Agreement for a project development and capacity building grant of EUR 500,000 (approximately INR 3.5 Crores) with the Rural Electrification Corporation Ltd. (REC). The Agreements were signed in New Delhi by Mr. Rajeev Sharma, Chairman and Managing Director of REC and Mr. Oskar von Maltzan, Country Director (India) of KfW, in the presence of Mr. Prabodh Saxena, Joint Secretary, Department of Economic Affairs of India?s Ministry of Finance, Mr. Sanjeev Kumar, Director (RE), Ministry of Power and Mr. Bernd Dunnzlaff, Head of Economic Cooperation & Development, Embassy of the Federal Republic of Germany.

REC is the nodal agency for the implementation of the Rajiv Gandhi Grameen Vidyutikaran Yojana, India?s national initiative for rural electrification, and, as a result, is very well placed in terms of infrastructure and cross regional outreach to take forward the mission of access to clean energy. The reduced interest loan provided by KfW on behalf of the German Government will refinance sub-loans made by REC for renewable energy and energy efficiency projects in rural areas. The grant component is intended to provide capacity building support to REC in order to enable the development of bankable projects and innovative business models for energy access at the tail ends of the electricity grid.

In order to tackle the twin problem of widening power deficits and mounting carbon emissions, the Indian Government has set ambitious goals to deliver access to the poor and to increasingly replace coal with renewable sources. The Agreements signed today form part of the Financial Cooperation between India and Germany. They also symbolize the long standing commitment India and Germany show towards each other. Today?s ceremony took place under the fifteen-month collaborative celebration titled ?Germany and India 2011-2012: Infinite Opportunities?.
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Posted by Gloria Llopis | 2012-04-03