New Delhi: KfW, a German state-owned development bank, and Indian Renewable Energy Development Agency Limited (IREDA) have signed the 7th Line of Credit (LoC) for Euro 200 million (in equivalent USD 222.82 million) on December 16, 2019, in New Delhi. The line of credit is for a tenure of 15 years with a grace period of three years, and it will be utilized by IREDA for financing Renewable Energy projects in India. This LoC is secured by the sovereign guarantee from the government.
The loan agreement for availing the LoC of Euro 200 million from KfW was signed by IREDA's Chairman & Managing Director (CMD) Praveen Kumar and KfW's Director Dr Christoph Kessler in the presence of KfW's Principal Country Manager Jochen Saleth, IREDA's Director (Finance) SK Bhargava, IREDA's Director (Technical) Chintan Shah and other senior officials.
The KfW, formerly KfW Bankengruppe (banking group), is a German state-owned development bank, based in Frankfurt. It was formed in 1948 after World War-II as part of the Marshall Plan. As of 2018, it is Germany's third-largest bank by the balance sheet.
IREDA is a Miniratna PSU under the Ministry of New and Renewable Energy (MNRE). It was established as a non-banking financial institution in 1987. IREDA engaged in promoting, developing and extending financial assistance for setting up projects relating to new and renewable sources of energy and energy efficiency and conservation with the motto: "Energy for Ever".