Home >Industry >Energy >India power lines to get $1.2 billion German revamp with KfW

Berlin: German state-owned bank KfW Group will spend €1 billion ($1.2 billion) to refurbish India’s electricity network for carrying more renewable energy from sources such as solar and wind.

KfW agreed to loan Power Grid Corp of India Ltd €500 million to build new power lines and signed deals with India’s government for two loans totalling €125 million for grid projects in Rajasthan and Tamil Nadu, it said on Thursday in an emailed statement. The deals are part of a support package of €1 billion, it said.

“Demand for power in India is rising unremittingly," said Norbert Kloppenburg, a KfW board member. “The expansion of transmission is the task of the moment because of the great potential of renewable energies."

About as many people in India are without electricity as the population of the US and the number is growing every year. Prime Minister Narendra Modi wants to bring electricity to every home by 2019 by leapfrogging the nation’s ailing power- distribution infrastructure with solar-powered local networks—the same way mobile-phones have enabled people in poor, remote places to bypass landlines.

About 90% of India’s renewable energy sources are located in seven states, meaning most of the plants are far from where power is consumed, KfW said. That is the reason updating India’s grid is key, it said. Bloomberg

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