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India to Receive Euro 1 billion Soft Loan for Green Energy Corridors.

Union Minister for State (IC) for Power, Coal, New & Renewable Energy and Mines, Shri Piyush Goyal in a written reply in Lok Sabha today, said that in order to facilitate integration of large scale renewable generation capacity addition, a comprehensive scheme including Intra-State and Inter-State transmission system has been identified as a part of ‘Green Energy Corridors’. Intra-State Transmission System is being implemented by respective State Transmission Utilities (STU) and Inter-State Transmission System is being implemented by Power Grid Corporation of India Ltd. (PGCIL).

The Minister informed that for the funding of green energy corridors in both intra and inter State transmission projects, under the framework of cooperation between Govt. of India and Govt. of Germany, KfW Germany is providing soft loan to the tune of Euro 1 billion. Intra State transmission schemes under Green Energy Corridors (GEC) are to be funded as 20% equity of the State Govt., 40% grant from National Clean Energy Fund (NCEF) and 40% soft loan, whereas, the inter State transmission schemes are to be funded as 30% equity by PGCIL and 70% as soft loan, he added.To evacuate power from the renewable capacity addition in renewable rich States (Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Maharashtra, Rajasthan, Madhya Pradesh and Tamil Nadu), transmission system strengthening, both Intra State and Inter State.