REC Limited, the state owned power sector financier, signed a 200 million Euro loan with the German bank KfW in Frankfurt on 13th August 2018.
This is REC’s fourth line of credit under Indo-German development cooperation which REC will utilize to finance renewable energy projects in India.
“This is yet another step towards promoting renewable energy in India after having more than tripled our financing in renewable sector last year. The partnership reflects the commitment of both the institutions towards sustainable development”, said Dr. P.V. Ramesh, CMD, REC.
Dr. P.V. Ramesh, CMD, REC and Mr. Roland Siller, Member of the Management Committee – Europe and Asia, KfW signed the pact in the presence of Dr. A.K. Verma, Joint Secretary, Ministry of Power and the Consul General of India Ms. Pratibha Parkar.
REC Limited, a Navratna CPSE under the Ministry of Power, is one of the key players financing the power sector in India, lending to power projects across the value chain. Its sanctions in the renewable sector grew from Rs. 2,090 crore in FY17 to Rs. 7,034 in FY18. In FY18 Q4, 17% of REC’s total sanctions were in the renewable energy sector.
KfW is one of the world’s leading and promotional banks, in which the German federal government has an 80 percent stake and federal states own 20 percent.