PFC inks loan pact worth EUR 150 million with German lender KfW

New Delhi Aug 21 (PTI) State-owned power sector finance firm PFC on Thursday said it signed a loan agreement worth EUR 150 million with German lender KfW to fund projects under a government's scheme to revamp electricity distribution in the country.

The loan agreement with KfW marks a continuation of the long-standing partnership of the governments of India and Germany in the energy sector, built over several decades, PFC (Power Finance Corporation) said in a statement.

KfW is Germany's largest promotional bank and is committed to improving economic, social and environmental conditions across the globe on behalf of the Federal Republic of Germany, the statement said.

The loan proceeds will be utilised to finance projects under the Government of India's Revamped Distribution Sector Scheme (RDSS), aimed at improving the operational and financial efficiency of power distribution companies across the country.

The scheme with an outlay of Rs 3,03,758 crore was launched in 2021.

PFC and KfW have previously collaborated on multiple projects in the distribution sector, and this new facility is expected to further strengthen bilateral cooperation while contributing to the shared goal of both countries of accelerating the energy transition.

The loan agreement was signed by Parminder Chopra, Chairman and Managing Director, PFC, and Stefan Wintels, CEO, KfW, in the presence of Gottfried von Gemmingen, Head of Division for Economic Affairs, German Embassy New Delhi.

"This new line of credit will help in realising government's vision of ensuring reliable, affordable, and sustainable power supply to consumers across the country. We also look forward to working with KfW in new and emerging areas, especially renewables and clean energy, thereby advancing India's energy transition," Chopra said. PTI ABI HVA