Foreign Loans to India

Tags: Economics/Business

KfW to provide USD 169.5 million loan to REC 

• German Development bank KfW  will provide an ODA loan of USD 169.5 million(Rs 1275 Crore ) to Rural Electrification Corporation (REC) to  finance Power Sector and Renewable Energy Projects. 
• This loan  is being provided under the Indo-German Bilateral Partnership.
• The ODA loan will be deployed in part-financing power generation projects that are based on innovative solar photovoltaic technology, 

ODA : Overseas Development Assistance

  It is the government aid/loan  given by the developed countries to developing countries for its economic development and welfare . The aid or loans cannot be used for military purposes or for commercial purposes like export promotions . The loan is given at a very low interest rate. And has a very long repayment period..