Rural Electrification Corporation (REC) has signed an agreement with KfW Development Bank to get a USD 169.5 million official development assistance term loan via the Indo-German Bilateral Partnership.
This is in compliance with the Ministry of Finance’s Department of Economic Affairs’ permission. The proceeds of the ODA loan would be used to partially fund solar photovoltaic technology-based power projects in India at low-interest rates.
This is the sixth loan line signed between REC and KfW for power sector projects, as well as the third credit line for renewable energy projects.
REC, a navratna firm under the Ministry of Power’s administrative supervision, has been reshaping its policies to match with market demands and implementing financial solutions and procedures that offer scalable and effective means of channelling both private and governmental investments in renewable energy. As proof of this, among all the segments REC finances, the renewable energy industry has the lowest interest rates.
