PFC Inks Loan Pact with German Lender KfW
State-owned power financing company PFC has finalized a loan agreement totaling EUR 150 million with German bank KfW to support initiatives under a governmental program aimed at modernizing electricity distribution in the nation.
The loan agreement with KfW signifies an ongoing collaboration between the governments of India and Germany in the energy sector, established over many years, PFC (Power Finance Corporation) states.
KfW is the largest development bank in Germany, dedicated to enhancing economic, social, and environmental conditions worldwide on behalf of the Federal Republic of Germany.
The funds from the loan will be used to support initiatives under the Government of India's Revamped Distribution Sector Scheme (RDSS), which focuses on enhancing the operational and financial effectiveness of power distribution firms nationwide.
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PFC and KfW have previously partnered on various projects in the distribution sector, and this new facility aims to enhance bilateral collaboration while advancing the mutual objective of both nations to expedite the energy transition.
The loan contract was executed by Parminder Chopra, Chairman and Managing Director of PFC, and Stefan Wintels, CEO of KfW, with Gottfried von Gemmingen, Head of Division for Economic Affairs at the German Embassy in New Delhi, present.
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"This new credit facility will aid in achieving the government's goal of providing consumers nationwide with a dependable, affordable, and sustainable power supply." Chopra stated, "We anticipate collaborating with KfW in new and developing sectors, particularly in renewables and clean energy, thus promoting India's energy transition."