Press Information Bureau

Government of India

Ministry of Finance

06-October-2015 12:09 IST

Government of India and KFW (Federal Republic of Germany) signed here yesterday two loan agreements worth Euro 125 Millions for financing two projects under the Green Energy Projects (GEC) programme- Himachal Pradesh (Euro 57 million) and Andhra Pradesh (Euro 68 million). Loan agreements were signed by Mr. S. Selvakumar, Joint Secretary (Bilateral Cooperation), Department of Economic Affairs, Ministry of Finance on behalf of the Government of India and Mr. Roland Sillar, Member, KFW Board Management, from German side. Project agreements were also signed by Mr. S.L. Sharma, MD, HPPTCL and Mr. P. Satyamoorty, Director (Finance), Andhra Pradesh TRANSCO relating to their respective State(s)

With the Green Energy Corridors, the intra-State network will feed the renewable energy to the respective State grids and the high capacity transmission corridors and inter-State network will connect major renewable energy pockets with the national grid.

Renewable Energy is one of the key areas of Indo-German partnership mentioned in the Joint Statement of Hannover in April 2015 and with financing of the transmission infrastructure of Renewable Energy projects, the Central and State grids will be strengthened to evacuate more green energy.

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DSM/KA

Green energy finance enables transmission upgrades to integrate renewable generation into state and national grids. Loan agreements between the Government of India and KfW provide financing for Green Energy Corridors projects in Himachal Pradesh and Andhra Pradesh to fund intra state networks and high capacity transmission corridors that will enable renewable energy to be fed into state grids and connected to the national grid, implemented through project agreements with the respective state transmission companies.