Rs 1120 crore loan deal with KFW Bank Germany
To modernize the energy sector of Madhya Pradesh by equipping it with modern technologies, the Department of Energy has signed a contract with KFW Development Bank Germany for a loan and a grant. Vivek Porwal, Energy Secretary and Managing Director of MP Power Management Company, Rajiv Keskar, Commercial Manager on behalf of MP Power Management Company and Hemant Bhatnagar as Bank Representative signed contract forms at Power Regional Office Management Company in Bhopal.
Separate loan agreements, separate grant agreements and project contracts have been signed for funding of Rs 1400 crore for the various development works proposed at the three power distribution companies in the state.
Energy Minister Pradyuman Singh Tomar has informed that KFW Development Bank will lend Rs 1120 crore in this mega scheme. The government will make available to the Ministry of Energy the remaining amount of Rs 280 crore in this scheme.
Through these energy reform efforts, works like smart metering, segregation of power lines can be done in work areas of Madhya Pradesh East Zone Power Distribution Company, Central Zone Electricity Distribution Company and West Zone Power Distribution Company.
It should be noted that the Ministry of Finance, Government of India signed a loan agreement and a grant agreement with KFW Development Bank Germany on December 23, 2021.
The Madhya Pradesh government is trying to strengthen the state’s power sector based on this contract.