New Delhi: REC Limited has entered into an agreement with KfW Development Bank for availing ODA term loan of USD 169.5 million under Indo-German Bilateral Partnership in accordance with the approval granted by the Department of Economic Affairs, Ministry of Finance. "Proceeds of ODA loan will be deployed for part financing of innovative Solar PV Technology-based generation Projects in India at competitive interest rates", REC said in an official statement issued Thursday.
This is the fifth credit line signed between REC Limited and KfW for the financing of power sector projects and the third credit line for the financing of renewable energy projects.
REC Limited is continuously re-shaping its policies to align with market requirements and developing financial solutions and mechanisms that create scalable and effective ways of channelizing both the private and public investments in the renewable energy space. As a testament to this, REC offers the lowest interest rates to the renewable energy sector among all the segments being financed by the corporation.
ODA loans are loans extended by donor governments, generally developed countries, directly to developing countries. ODA loans are commonly known as yen loans in the case of Japan. They are classified as a form of official development assistance under the flow of development funds scheme produced by the OECD's Development Assistance Committee (DAC).
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