REC signs ODA term loan agreement with KfW Development Bank for USD 169.5 million

The proceeds of the ODA loan will be used to partially finance innovative solar PV projects in India at competitive interest rates.

State-owned REC Ltd has signed a pact with KfW Development Bank to avail a credit line of USD 169.5 million to finance power sector and renewable energy projects.

According to an official statement released by the ministry of power, “REC Ltd, in accordance with the approval granted by the Department of Economic Affairs, Ministry of Finance, GoI, has signed an agreement with KfW Development Bank for a USD 169.5 million ODA (official development assistance) term loan provision.”

The statement noted that the proceeds will be used towards part-financing innovative solar PV power generation projects in India at competitive interest rates.

This is the fifth credit line signed between REC and KfW for financing power sector projects. While for financing for renewable energy projects, this is the third credit line signed between the two.

In addition to continually reshaping its policies to align with market requirements, REC is developing financial solutions and mechanisms to efficiently channel public and private investments into the renewable energy sector.

In recognition of this, REC claims to offer the lowest interest rates for the renewable energy segment among all the segments financed by the corporation.