India Signs Agreement With Germany To Develop Green Energy Corridors Project

Taking another step towards cementing its bilateral ties, India and Germany have signed an agreement to financially support the Green Energy Corridors (GEC) project. The Exchange of Note was signed under the Indo German Bilateral Development Cooperation on Wednesday.

Together, both the countries are planning to create transmission infrastructure in the renewable energy rich states across India, which can later be transferred to the national power grid.

“Government of Germany has committed funds amounting to Euro 500 million for GEC project this year. In this regard, the Exchange of Note, signed by the German Ambassador, was presented to Rajiv Mehrishi, finance secretary, government of India, by Heiko Warnken, head of Development Cooperation, Embassy of Germany to India here yesterday. With this, the total commitment from government of Germany for GEC project stands at Euro 750 million. In 2013, government of Germany had committed Euro 250 million,” as per a statement issued by the Ministry of Finance.

The government has also signed three loan agreements for the project for a total loan amount of Euro 625 million. “Rajesh Khullar, joint secretary of Department of Economic Affairs, signed loan agreements with German government’s Development Bank KfW to provide a loan of Euro 76 million to Tamil Nadu and a loan of Euro 49 million to Rajasthan for intra-state transmission schemes,” the ministry said.

“Power Grid Corporation of India Limited signed loan agreement for Euro 500 million with KfW for inter-state transmission schemes,” it added.

The Department of Economic Affairs also inked an agreement with KfW for an amount of Euro 4 million in order to provide technical assistance to Himachal Pradesh Forest Ecosystems Climate Proofing project as well as Tamil Nadu Urban Infrastructure Development Fund project respectively.