India and Germany have signed an agreement to finance clean energy for rural development projects. As per the agreement, KfW(German Development Bank) will provide a loan amount of 100.1 million Euros to Rural Electrification Corporation, REC, to support such projects in the field of renewable energy and energy efficiency.

The loan agreement was signed by Mr Rajeev Sharma, Chairman and Managing Director of REC and Mr Oscar von Maltzan, Country Director of KfW for India in New Delhi. A Guarantee Agreement was also signed between KfW and the Government of India. This is the third Line of Credit that REC is receiving under the Bilateral Development Programme between India and Germany.