The Government of India signed a Note of Exchange with Government of Germany for financial cooperation to support the Green Energy Corridors project under Indo German bilateral Development Cooperation in New Delhi on December 18.
The GEC project in the power sector aims to create transmission infrastructure in states with rich renewable energy potential and facilitate evacuation of renewable energy into the national grid.
The German government, in 2012, had indicated its willingness to support the GEC project with funds amounting to Euro 1 billion over a period of five years under the ambit of Indo-German bilateral development cooperation. Germany has committed funds amounting to Euro 500 million for the project this year. With this, the total commitment from Government of Germany for the GEC project stands at Euro 750 million. In year 2013, Germany had committed Euro 250 million.
On the occasion, three separate loan agreements were also signed for the GEC project amounting to Euro 625 million. Rajesh Khullar, Joint Secretary, Department of Economic Affairs, Government of India, signed loan agreements with the German government’s development bank, KfW, for a loan of Euro 76 million to the Tamil Nadu government and a loan of Euro 49 million to the Rajasthan government for intra-state transmission schemes. Power Grid Corporation of India Ltd signed a loan agreement for Euro 500 million with KfW for inter-state transmission schemes.
Agreements were also signed by the Department of Economic Affairs with KfW for a grant amount of Euro 2 million to provide technical assistance to the Himachal Pradesh Forest Ecosystems Climate Proofing Project and also for a grant amount of Euro 2 million for extending technical assistance for the ongoing Tamil Nadu Urban Infrastructure Development Fund Project.