IREDA and KfW Sign €20 Million Loan Agreement
The KfW Development Bank and the Indian Renewable Energy Development Agency Ltd. (IREDA) have signed the 6th Line of Credit (LoC) for €20 million to be utilized by IREDA for ‘Access to Energy’ by financing renewable energy projects in India. The loan period is 12 years with four years of grace period. This LoC is on standalone basis without sovereign guarantee from the Government of India. This 6th line from KfW is specifically for supporting IREDA for providing financial assistance for off-grid solutions mainly through photovoltaic (PV)/ hybrid mini-grids, PV irrigation pumps, household lighting systems, etc., to areas which have none or very limited access to modern energy services. This LoC will help IREDA in providing medium- to long-term loans to private enterprises who offer climate-friendly, decentralized energy solutions and find it difficult to avail loan facilities in the normal course.
The KfW Development Bank is also providing grant of €05 million for technical assistance and for subsidy to sub-borrowers. The Agreement for availing the LoC of €20 million from KfW, was signed by Shri K S Popli, Chairman and Managing Director, IREDA and Mr Peter Hilliges, Director, and Mr Kurt Strasser, Deputy Director, KfW India, in New Delhi in the presence of Mr Upendra Tripathy, Secretary, MNRE, and other senior officials of MNRE, KfW, and IREDA.