New Delhi, Rural Electrification Corporation (REC) has entered into an agreement with KfW Development Bank for availing an official development assistance term loan of USD 169.5 million under the framework of Indo-German Bilateral Partnership.
This is in accordance with the approval granted by the Department of Economic Affairs, Ministry of Finance. Proceeds of the ODA loan will be deployed for part financing of innovative solar photovoltaic technology based generation projects in India at competitive interest rates.
This is the fifth credit line signed between REC and KfW for financing of power sector projects and third credit line for financing of renewable energy projects.
A navratna company under the administrative control of the Ministry of Power, REC has been re-shaping its policies to align with market requirements and developing financial solutions and mechanisms that create scalable and effective ways of channelising both private and public investments in the renewable energy space. As a testament to this, REC offers the lowest interest rates to renewable energy sector among all the segments being financed by the corporation.