India's energy efficiency and affordable housing programmes receive support from Germany
The loan worth EUR 200 million (Rs 1,400 crores) increases total German commitment for better energy efficiency in India to EUR 600 million (Rs 4,200 crore).
The loan agreement was signed in the presence of German Ambassador Dr. Martin Ney.
The German Development Bank (KfW) signed - on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ) the agreement with Energy Efficiency Services Limited (EESL).
The agreements were signed by Selva Kumar, Joint Secretary Department of Economic Affairs, Saurabh Kumar, Managing Director, EESL, Dr. Norbert Kloppenburg, member of the Executive Board of KfW, and Roland Siller, member of the Management Committee of KfW.
EESL uses the programme funds to invest in energy efficiency in various sectors, e.g. domestic households, public buildings, street lighting, water supply and other public facilities, agriculture and industry.
EESL as an Energy Service Company (ESCO) not only finances energy efficiency measures, but also provides a multitude of related services to their clients for implementation (e.g. assessment of options, planning and monitoring).
The programme thus contributes to a more efficient use of energy and therefore reduces greenhouse gas emissions.
It is a follow-up to the earlier programme “Energy efficiency in public buildings and infrastructure”, which has successfully implemented the Domestic Efficient LED Lighting Programme (DELP) resulting in an estimated 600,000 tons of CO2 emission reduction annually.
Additionally, a financing agreement of EUR 500,000 (Rs 3.5 crore) was signed with Indian Renewable Energy Development Agency (IREDA).
IREDA will use these funds to assure the quality of solar PV projects and to mitigate the challenges faced in solar rooftop PV projects by establishing an implementation structure. These grant funds will also be used to support IREDA in market assessments concerning future trends in solar PV.
On Thursday, the State Bank of India and the German Development Bank (KfW) on a special mandate from the German Government concluded a USD 274 million (Rs 1,796 crores) loan facility to support lending for affordable housing in India.
Siddhartha Sengupta, Deputy Managing Director signed on behalf of SBI, while KfW was represented by Dr. Norbert Kloppenburg, Member of the Executive Board, and Roland Siller, Member of the Management Committee of KfW Development Bank.
With its focus on housing loans for economically weaker sections (EWS) and lower income group (LIG) households, the facility is designed to complement the Indian Government’s affordable housing programme, the Pradhan Mantri Awas Yojana.
Lower income households account for 95 per cent of the shortage of an estimated 20 million housing units in the country.
“Sustainable mortgage loans to low income families to purchase, build or upgrade their homes is critical for inclusive growth and development”, said Dr. Kloppenburg on the occasion. “Partnering with India’s largest bank on this mission provides a tailor-made platform for quick upscaling of housing finance for this segment.”
Image: GermanyinIndia website
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