KfW and PFC have signed a loan agreement for €200 Million. PFC will on-lend these funds to Indian electricity distribution companies to implement measures aimed at reducing technical losses and lowering GHG emissions. Distribution companies will receive concessional loans for implementing measures in a sustainable manner.

On behalf of the Federal Ministry for Economic Cooperation and Development (BMZ), KfW has entered into a loan agreement with PFC, a state-owned financial institution, for €200 Million. Dr. Christoph Kessler, Director, KfW Office India, and Mr. Rajeev Sharma, Chairman & Managing Director, PFC, have exchanged agreements in the presence of Mr. Sanjiv Nandan Sahai, Secretary (Power), Government of India; Mr. Vivek Kumar Dewangan, Joint Secretary, Ministry of Power, Government of India; Mr. Norbert Barthle, Parliamentary State Secretary, German Federal Ministry for Economic Cooperation & Development; Mr. Christian Hirte, Parliamentary State Secretary, Federal Ministry for Economic Affairs & Energy of Germany; and Ms. Sandra Soares, Head of Energy Cell, KfW Office India. The event took place on 1 November during the 8th Indo-German Energy Forum.

The Indian government has a special focus on encouraging electricity distribution companies to reduce their losses, and to this effect has announced several schemes over time. The present arrangement between KfW and PFC reinforces and supports the objectives of the Indian government. PFC shall onlend concessional loans to the Indian electricity distribution companies for implementing measures to reduce their technical losses and, as a result, contribute to a more stable and efficient climate-friendly energy supply in India. A reduction in technical losses would contribute to the reduction of greenhouse gas emissions. 

KfW will also provide support with the implementation of an Environmental and Social Management System at PFC, as well as with training and capacity building of electricity distribution companies.