For India’s renewable energy (RE) projects in rural areas, the German government owned development bank KfW has agreed to give a loan of Rs 700 crore. The Rural Electrification Corporation (REC), which is the nodal agency for the implementation of the Rajiv Gandhi Grameen Vidyutikaran Yojana, and the German bank, signed an agreement for it recently.
India has set ambitious goals to replace coal with renewable sources to meet power shortage in rural areas and also to reduce its share of carbon emission. A financing agreement has also been signed for a project development and capacity building grant of EUR 500,000 (approximately Rs 3.5 crore).
The reduced interest loan will refinance sub-loans made by REC for renewable energy and energy efficiency projects in rural areas.
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