Financial assistance to promote new renewable energy projects in India
The Indian Renewable Energy Development Agency Limited (IREDA) and Germany's Development Bank KfW signed an Agreement on 7 March 2011 for financial assistance of 200 million euros (approx. Rs 1,200 crores) for promotion of new renewable energy projects in India. In addition, KfW is also extending technical assistance to the tune of 0.50 million euros to IREDA for various accompanying measures, including capacity building measures for IREDA.
The Agreement was signed in New Delhi by Debashish Majumdar, Chairman and Managing Director, IREDA and Uwe Ohls, Senior Vice President, KfW in the presence of Prabodh Saxena, Joint Secretary, Department of Economic Affairs of India's Ministry of Finance.
The concessional loan provided by KfW on behalf of the German Government to IREDA has a fixed interest rate, with a 12 year repayment period, including a three-year moratorium. The loan agreement is KfW's 4th Line of Credit to IREDA for promoting renewable energy and energy efficiency projects in India. KfW and IREDA have been cooperating with each other since 1995 and IREDA has successfully utilised the previous three lines of credit worth 131 million euros.
The latest project aims at promoting relatively new renewable energy projects in India from the point of view of new technology, institutional setup or financing. The Project would support IREDA to refinance projects on solar energy (both photovoltaic and thermal), wind energy (using generation-based incentive), biomass and cogeneration – including gasification and methanation – and small hydro power.
