KfW: EUR 1 billion for new power lines in India - high potential for renewable sources of energy

Frankfurt (ots) -

- Ecologically sustainable energy supply in India
- World's fifth-largest electricity producer is building new power
lines
- Opportunities for private investors in the expansion of the
network infrastructure

On behalf of the Federal Ministry for Economic Cooperation and
Development (BMZ), the business area KfW Development Bank today
concluded a EUR 500 million loan agreement with the Indian power
transmission company Powergrid for the construction of new power
lines. This is the first component of the project for expanding the
Indian electricity network, for which KfW is providing a total of EUR
1 billion. As part of the project, the construction of so-called
"green corridors" will be financed. These new transmission lines will
feed the electricity obtained from renewables into the public
network.

At the same time, contracts were signed with the Indian government
for expanding the network in Rajasthan and Tamil Nadu. The power
lines will be financed by two loans totalling EUR 125 million
extended to the transmission companies in these federal states.
Together with Powergrid's national lines, they will strengthen the
entire network in India. Electricity will thus be transported more
effectively in future. This reduces network losses and improves the
carbon footprint.

"The demand for electricity in India is growing continuously. 25%
of India's population, which equates to 300 million people, still has
no access to electricity. This represents a significant obstacle to
continuous economic growth and to reducing poverty in the
subcontinent. In view of the great potential for renewable sources of
energy, the expansion of the electricity transmission networks for
alternative energies is the order of the day", commented Dr Norbert
Kloppenburg, Member of the Executive Board of KfW Group.

The share of renewable energies in the Indian electricity mix
should be expanded to 15% by the year 2020. This goes hand in hand
with a considerable decline in CO2 emissions. However, the end user
can only access the "green energy" - that is derived in particular
from solar and wind power - provided a stable and efficient
transmission network is in place. 90% of renewable sources of energy
are found in only seven federal states (Gujarat, Andra Pradesh,
Himachal Pradesh, Maharashtra, Karnataka, Rajasthan and Tamil Nadu)
and are a long distance from the large economic centres having a high
electricity consumption. It is therefore essential to expand the
network infrastructure within the scope of one of the most ambitious
projects worldwide.

Further information on the business area: KfW Development Bank can
be found at: www.kfw-entwicklungsbank.de.

Pressekontakt:
KfW, Palmengartenstr. 5 - 9, 60325 Frankfurt
Kommunikation (KOM) Dr. Charis Pöthig
Tel. +49 (0)69 7431 4683, Fax: +49 (0)69 7431 3266,
E-Mail: presse@kfw.de, Internet: www.kfw.de