To promote development of renewable energy in India, the German Government-owned development bank KfW signed a Loan Agreement worth EUR 250 million (approximately INR 1,600 Crore) with the Government of India, on August 10, 2011. The Agreement was signed in New Delhi by Mr. Prabodh Saxena, Joint Secretary, Department of Economic Affairs of India’s Ministry of Finance and Mr. Uwe Ohls, Director General Europe and Asia of KfW, in the presence of Mr. Cord Meier-Klodt, Chargé d’Affaires a.i. of the Federal Republic of Germany, Mr. C.K. Jhadhav, Deputy Secretary (Energy), Government of Maharashtra, and Mr. G.J. Girase, Director Finance MAHAGENCO.
To tackle the twin problems of widening power deficits and mounting carbon emissions, the Indian Government has set ambitious goals to deliver access to all Indians and to increasingly replace coal with renewable sources. This agreement supports the Government of India’s agenda of inclusive growth and its focus on a low-carbon growth strategy for power generation in India.
“Developing the use of solar energy sources not only helps address environmental concerns, but also improves energy security and spurs regional economic development,” said Ohls, Director General Europe and Asia, KfW. “Therefore, the solar power plant at Sakri, being the largest of its kind in India and, in fact, the entire world, will open up new opportunities for a more secure and sustainable energy future in India.”
The concessional loan will finance a 125 MW solar PV power plant to be constructed by MAHAGENCO at Shivajinagar, Sakri, in the Dhule district of Maharashtra with the option for further expansion by 25 MW. Sakri Solar Power Plant will be the largest of its kind in the world. Its total costs are estimated at EUR 370 million (INR 2,370 Crore) and will be funded by the loan amount from KfW and the Maharashtra state government’s contribution.