Germany inks pact with India to provide 625 mln euro loan

Germany has inked a pact with India to provide 625 million loan to create infrastructure for renewable energy and its transmission through national grid.
"The government signed note of exchange with Germany for financial cooperation to support Green Energy Corridors (GEC) project under Indo German bilateral development cooperation," an official release said today.
Three separate loan agreements were signed under the pact.
The agreements included 76 million euro and 49 million euro loan from German government's development bank KfW for intra-state transmission schemes for Tamil Nadu and Rajasthan respectively.
The third pact was of 500 million euro between Power Grid Corporation and KfW for inter-state transmission schemes.

Two separate loan agreement of 2 million euro each were signed for technical assistance to Himachal Pradesh Forest Ecosystems Climate Proofing project and Tamil Nadu Urban Infrastructure Development Fund project.

Germany has showed its willingness to support GEC project with funds amounting to 1 billion euro over a period of five years under the Indo-German bilateral development cooperation.
Earlier in 2013, Germany had committed 250 million euro to India under this project.
India has been receiving support from Germany and KfW since 1950s in sectors such as energy, environment protection and natural resources as well as sustainable economic development.