Madhya Pradesh: Government signs €140 million loan agreement with KfW for power sector reforms in Madhya Pradesh

The Government of India (GoI) and the German development bank KfW on Thursday signed agreements for a soft interest loan of 140 million euros and a grant of 2 million euros for an energy reform program in the Madhya Pradesh.

The project will contribute to a more stable, secure and climate- and environment-friendly energy supply in India by improving and strengthening distribution networks in Madhya Pradesh, the finance ministry said in a statement.

It will contribute to an efficient, technically and economically efficient as well as socially and environmentally sustainable energy supply, he added.

The project has two components: the implementation of smart meters and an advanced metering infrastructure (AMI); and the separation of agricultural and non-agricultural feeders.

Meanwhile, another release says a loan agreement has been signed between the GoI and the European Investment Bank (EIB) for a first tranche loan of €250 million for the Agra Metro Rail project.

The agreement was signed on Wednesday.

Prime Minister Narendra Modi had inaugurated construction work on the Agra metro project in Agra, Uttar Pradesh, last year via video conference.

The EIB has approved a total loan of €450 million for the project.

The EIB financing will help finance the construction of a 29.4 km metro corridor, comprising Corridor-1 from Sikandara to Taj East Gate (14 km) and Corridor-2 from Agra Cantt to Kalindi Vihar ( 15.4 km).

Furthermore, the project will improve the city’s economic productivity and catalyze job creation, he added.

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