Rural Electrification Corporation (REC) has signed an agreement with KfW, a German government-owned development bank for a loan of Euro 100.1 million including a grant component of Euro 0.5 million. The agreement was inked on March 30, 2012 and the loan is for financing ‘Clean Energy for Rural Development’ projects.
A guarantee agreement was also signed between KfW and the Government of India represented by Joint Secretary, Department of Economic Affairs, and Ministry of Finance.
The loan component is proposed to support such projects in the field of renewable energy and/or energy efficiency which contribute to rural development. This is the third Line of Credit that REC is receiving under Indo-German Bilateral Development Cooperation Programme.
