PFC signs EUR 150 million loan pact with KfW for strengthening India’s power sector

New Delhi: The country’s leading  power sector   Maharatna  PSU, Power Finance Corporation Ltd. (PFC), has signed a loan agreement for EUR 150 million, with KfW on 21st August. 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 loan proceeds will be utilized to finance projects under  Government’s Revamped Distribution Sector Scheme, aimed at improving the operational and financial efficiency of power distribution companies across the country according to a company press note.

This agreement marks a continuation of the long-standing partnership of two govts.,   India and Germany in the energy sector, built over several decades. 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 Mrs. Parminder Chopra, CMD, PFC, and . Stefan Wintels, CEO, KfW, in the presence of . Gottfried von Gemmingen, Head of Division for Economic Affairs, German Embassy New Delhi,  Sandeep Kumar, Director (Finance),  and other senior officials from both the organisations

Mrs. Parminder Chopra was overwhelmed and averred,  “PFC has been at the forefront of financing and enabling reforms in India’s power distribution sector. 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.”