KfW and IREDA signs 6th Line of Credit (LoC) for € 20 million

KfW Development Bank and Indian Renewable Energy Development Agency Ltd. (IREDA) have signed € 20 million Loan Agreement to be utilized by IREDA for “Access to Energy” by financing Renewable Energy projects in India.

The 6th Line of Credit (LoC) signed between KfW and IREDA is on standalone basis without sovereign guarantee from Government of India.  It is specifically for supporting IREDA for providing financial assistance for off-grid solutions mainly through photovoltaic (PV) / hybrid mini-grids, PV irrigation pumps, household lighting systems, etc. to areas which have none or very limited access to modern energy services.

This LoC will help IREDA in providing medium to long term loans to private enterprises that offer climate friendly, decentralized energy solutions and find it difficult to avail loan facilities in the normal course.

KfW Development Bank is also providing grant of € 05 million for technical assistance and for subsidy to sub borrowers.  The loan period is 12 years with 4 years of grace period.

The Agreement for availing the LoC of € 20 million from KfW, was signed by K S Popli, Chairman and Managing Director, IREDA and Peter Hilliges, Director, KfW India.