Published On:October 29 2014
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Ministry of new and renewable energy seeks loan from KfW to promote solar project
The ministry of new and renewable energy (MNRE) wants the government to back a loan of one billion euros (about Rs 7,750 crore) sought from German bank KfW in order to promote rooftop solar systems worth 1,600 megawatt across the country. German bank KfW is keen on lending one billion euros for the solar rooftop project to India but hedging cost of the loan will make it expensive for borrowers and mar the purpose of accessing funds from abroad.
The ministry wants to make loans for rooftop installation available at interest rate of not more than 8%, the official said, adding that the loan, as and when it comes, will be disbursed either through Indian Renewable Energy Development Agency ( IREDA) or Rural Electrification Corporation (REC).