PFC signs €150 million loan agreement with Germany’s KfW to fund distribution reforms under RDSS

New Delhi: Power Finance Corporation Ltd (PFC) on Thursday said it has signed a loan agreement of € 150 million with Germany’s KfW to finance projects under the Government of India’s Revamped Distribution Sector Scheme (RDSS).The agreement was signed on August 21 by PFC Chairman and Managing Director Parminder Chopra and KfW CEO Stefan Wintels. The proceeds will be utilised for projects aimed at improving the operational and financial efficiency of power distribution companies across the country.According to PFC, the agreement continues the long-standing cooperation between the governments of India and Germany in the energy sector. PFC and KfW have earlier worked together on multiple projects in the distribution segment.The signing ceremony was attended by Gottfried von Gemmingen, Head of Division for Economic Affairs at the German Embassy in New Delhi, Sandeep Kumar, Director (Finance), PFC, and senior officials from both organisations.

“PFC has been at the forefront of financing and enabling reforms in India’s power distribution sector. This new line of credit will help in realising Government’s vision of ensuring reliable, affordable, and sustainable power supply to consumers across the country. We also look forward to working with KfW in new and emerging areas, especially renewables and clean energy, thereby advancing India’s energy transition,” Chopra said in a statement.