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The State government and the Kerala State Electricity Board (KSEB) are preparing to sign agreements shortly with German development bank KfW for availing of a loan for implementing Green Energy Corridor (GEC) projects in the State.
The KfW has offered a reduced interest-rate loan of 102.11 million Euro (a little over ₹880 crore) in two tranches of €42.11 million and €60 million, according to the KSEB. The KSEB has lined up the Ramakkalmedu Green Corridor Project, the Attapady Green Corridor Project and the North Green Corridor (NGC) Project for implementation.
The GEC scheme of the Union Power Ministry is aimed at integration of the renewable energy capacity additions across the country. The Department of Economic Affairs had informed States that they can procure soft loans from the KfW for GEC projects.
Agreement
A tripartite agreement among the KfW, State government and the KSEB, and a separate one between the KSEB and the KfW are expected to be inked soon. An agreement between the KfW and the Centre pertaining to projects in Tamil Nadu, Rajasthan, Kerala and Uttar Pradesh was signed a few weeks ago, a KSEB official said.
The three projects, proposed under the GEC II scheme of the Ministry of New and Renewable Energy (MNRE), are expected to cost ₹1457.55 crore, as per a revised estimate prepared by the KSEB.
In March this year, the MNRE had approved a grant of ₹138.71 crore for the Ramakkalmedu and Attappady energy corridors. In July, the government had cleared a funding pattern of 47:33:20 comprising KfW loan, Central grant and KSEB contribution respectively.
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