Panchabuta had reported last month that German government-owned development bank KfW plans to lend 800 million euros in the 2011-12 calender year to finance various renewable energy projects in India.
“We have already financed around 1.5 billion euros in the energy sector in India. In addition to this, we plan to earmark another 800 million euros to fund the green initiatives of India this year (CY”11),” KfW Director Oskar von Maltzan had told PTI.
The German government is keen to promote investment in energy-efficiency and renewable energy projects in India by providing sustainable financing through various agencies. These government agencies either implement renewable energy projects or lend funds to private or public investors.
KfW has provided funds to state-run power generating companies such as North Eastern Electric Power Corporation (NEEPCO) and NTPC for undertaking hydro and solar-based projects.
Power Finance Corp, SIDBI, the Indian Renewable Energy Development Agency (IREDA), REC and India Infrastructure Finance Company (IIFCL) are some of the entities being funded by the German bank.
Panchabuta had mentioned last month that KfW plans to sign a loan agreement worth 100 million euros with NTPC for a 15-MW solar plant in Rajasthan.
According to reports today, State-run National Thermal Power Corporation (NTPC), which plans to set up a 15 MW solar power plant at Anta in Rajasthan, is in talks with a German bank KfW, among others, to tie-up for funds.
It is understood that the power utility would be signing a loan agreement with German government-owned bank, KfW for $100 million.
“We are working out the modalities of the project and are in talks with various banks for loans. We are also in talks with KfW to tie-up for funds but nothing has been finalised as of now,” a NTPC official told PTI on condition of anonymity.
However, a KfW senior official confirmed that it would be signing an agreement with NTPC soon to lend $100 million for the solar thermal project, according to the report.
“We will be signing a loan agreement with NTPC for funding its 15 MW solar thermal power project in the next couple of months,” KfW’s Director, Oskar von Maltzan, said, stated the report.
The original planned funding by KfW was about 100 million euros. The cost of the project is estimated at around Rs 225 crore (Rs 15 crore per MW).