REC gets $169.5 mn from KfW Development Bank for power, renewable projects

State-owned REC Ltd has signed a pact with KfW Development Bank to avail USD 169.5 million to the power finance sector and renewable energy projects.

"REC Ltd has entered into an agreement with KfW Development Bank for availing ODA (official development assistance) term loan of USD 169.5 million under the Indo-German Bilateral Partnership in accordance with the approval granted by the Department of Economic Affairs, Ministry of Finance, Government of India," the power ministry said in a statement.

The proceeds of the ODA loan will be deployed for part-financing of innovative solar PV technology-based power generation projects in India at competitive interest rates, according to the statement.

This is the fifth credit line signed between REC Ltd and KfW for financing power sector projects and the third credit line for the financing of renewable energy projects.

REC is continuously re-shaping its policies to align with market requirements and developing financial solutions and mechanisms that create scalable and effective ways of channelising both public and private investments in the renewable energy space.

As a testament to this, REC offers the lowest interest rates to the renewable energy sector among all the segments being financed by the corporation, it stated.