New Delhi, 18 Dec 2014. Note of exchange was signed yesterday between Government of India and the Government of Germany to cooperate financially for the creation of Green Energy Corridors. This project will be carried out under Indo German bilateral Development Cooperation. This project called GEC has the aim to help in creation of transmission infrastructure in India states having great potential in renewable energy sources so as to connect them with a national grid. It was in the year 2012 that Germany had shown its willingness to help fund such a project with a total financing amounting to Euro 1 billion over a 5 year period. This project would be overseen by Indo-German bilateral development cooperation.
Germany has so far contributed Euro 750 million since 2013
This year alone, the amount of money committed by the government of Germany towards GEC project is Euro 500 million. German Ambassador signed the Note of exchange and it was presented by Mr. Heiko Warnken, who is the Head of Development Cooperation in German Embassy, to Finance Secretary Shri Rajiv Mehrishi yesterday. As Euro 250 million were released in 2013, the total contribution goes up to Euro 750 million by the Government of Germany.
Loans to states and also to Power Grid Corporation of India Limited
During this exchange of note, three agreements worth Euro 625 million were signed by the two countries under this GEC project. One loan agreement worth Euro 76 million was signed by Mr. Rajesh Khullar, Joint Secretary, Department of Economic Affairs, with Development Bank KfW. This loan is given to Tamil Nadu Government. Another loan of Euro 49 million has been given to Government of Rajasthan. Both these loans are meant to create intra state transmission projects. A third loan amounting to Euro 500 million was given to Power Grid Corporation of India Limited for implementation of interstate transmission projects.
Other loans were also granted
There were other loan agreements signed during this exchange of note between KfW and the Department of economic Affairs. There is this loan of Euro 2 million to implement Himachal Pradesh Forest Ecosystems Climate Proofing Project and also a Euro 2 million loan to implement Tamil Nadu Urban Infrastructure Development Fund Project.
Both Germany as well as KfW have been partners in economic development of India for a long time. KfW has provided money and technical assistance to various schemes and programs since 1950 that include environment protection, energy, sustainable development, and so on.
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About Sanjay Tandon
Sanjay Tandon is a graduate engineer from IIT Varanasi. He has been writing as a freelancer for many years. He loves to write on various niches. He is passionate about politics and economy and spends his free time watching news channels. He is also an expert on relationships.
