Germany will provide additional funding of 200 million euro to India's energy efficiency programme, taking its total commitment to the green initiative to 600 million euro.
"At German Embassy (in Delhi), the German Development Bank (KfW) signed -- on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ) -- a loan agreement with Energy Efficiency Services Ltd (EESL) over Euro 200 million (Rs 1,400 crore)," a statement by German Embassy said.
With the loan agreement signed in the presence of German Ambassador Martin Ney, the total German commitment for better energy efficiency in India stands at 600 million euro (Rs 4,200 crore).
State-run EESL uses the funds to invest in energy efficiency measures in various sectors like domestic households, public buildings, street lighting, water supply and other public facilities, agriculture and industry. It also provides related services to clients for successful implementation of projects.
The programme thus contributes to a more efficient use of energy and therefore reduce greenhouse gas emissions. It is a follow up to the earlier programme 'Energy Efficiency in Public Buildings and Infrastructure' which has implemented the domestic efficient LED lighting programme (DELP) resulting in an estimated 600,000 tons of CO2 emission reduction annually.
Besides, a financing agreement of euro 500,000 (Rs 3.5 crore) was signed with Indian Renewable Energy Development Agency (IREDA).
IREDA will use these funds to assure the quality of solar PV projects and to mitigate the challenges faced in solar rooftop PV projects by establishing an implementation structure. These grant funds will also be used to support IREDA in market concerning future trends in solar PV, it added.
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