Germany and India sign a loan of 20 million Euro for the promotion of hydropower in India

Dec 21, 2017

In the presence of the German Ambassador Dr. Martin Ney and the Joint Secretary S. Selvakumar (Department for Economic Affairs in the Ministry of Finance), representatives of the German Development Bank (KfW) and North Eastern Electric Power Corporation Ltd. (NEEPCO) signed a loan agreement of 20 million Euro for the continuing construction of the Pare hydroelectric plant (Pare HEP). This increases the sum of German commitments for hydropower projects in India to 450 million Euros.

Pare HEP (110 megawatts) is being developed by the NEEPCO in the Papumpare District of Arunachal Pradesh, India. The project will utilize the water of the Dikrong river, a tributary of mighty Brahmaputra, to generate electricity. Already in 2008 Germany contributed 80 million Euro to the construction of the plant; the additional 20 million Euro will serve to complete and safeguard the construction, in order to allow for commissioning in the first half of 2018. Concerning the compliance with environmental and social standards as well as the development of an early flood warning system, NEEPCO is supported by a grant from the German government of 0.5 Million Euro.

In the context of the Indo-German development partnership Germany promotes the expansion of renewable energies in India. Both countries thus contribute to the stabilization of the global climate in the sense of the Paris 2015 Climate Declaration and the United Nations Sustainable Development Goals. 

The Pare hydroelectric plant will provide a peaceful, climate-friendly and environmentally sound use of renewable hydroelectric energy to stabilize the power requirements in the North Eastern region of India.

The agreement aims to promote hydropower in India Enlarge image The agreement aims to promote hydropower in India (© German Embassy New Delhi)

In his speech, Ambassador Dr. Ney said that the hydropower sector has a stabilizing key role to play in improving the integration of renewable energy, thus supporting the changes in the energy sector in India towards more sustainable use.


North Eastern Electric Power Corporation Ltd. (NEEPCO) is a central public sector enterprise owned by the Government of India under the Ministry of Power. It is incorporated to plan, construct, operate & maintain power stations in the North Eastern Region of India. Currently, NEEPCO operates hydro, thermal and solar power stations with a combined installed capacity of more than 1,200 megawatts in North Eastern region. In addition to the Pare project, more than 600 MW of generating capacity are currently under construction.

About KfW:

The German Development Bank (KfW) acts as an implementing agency on behalf of the German Government. KfW is fully owned by the Federal Republic of Germany and is one of the largest banks in Germany.
Germany is a longstanding partner of India. Since the 1950s, more than 12 billion EUR has been sanctioned by the German Government through KfW, mainly in the fields of Energy, Financial Sector Development, Health, and Protection of the Environment and Natural Resources. The main objective of the German Government is to work together with the Indian Government in facilitating inclusive growth, reducing poverty and protecting the environment and climate.

© German Embassy New Delhi

Germany and India sign a loan of 20 million Euro for the promotion of hydropower in India

Representative of German Development Bank, KfW, German Ambassador to India, Dr. Martin Ney, Joint Secretary, S. Selvakumar, Department for Economic Affairs, Ministry of Finance, GoI & representative of North Eastern Electric Power Corporation Ltd. (NEEPCO)