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Bureaucracy

PFC signs EUR 150 million loan agreement with KfW to strengthen India’s power distribution sector

Indian-GRAPEVINE-pfc-signs-eur-150-million-loan-agreement-with-kfw-to-strengthen-indias-power-distribution-sector

Published 22 Aug, 2025

By Staff Reporter


Power Finance Corporation Ltd. (PFC), a Maharatna CPSE and India’s leading NBFC in the power sector, has signed a loan agreement of EUR 150 million, with KfW on 21st August 2025. KfW is Germany’s largest promotional bank and is committed to improving economic, social and environmental conditions across the globe on behalf of the Federal Republic of Germany. The loan proceeds will be utilized to finance projects under the Government of India’s Revamped Distribution Sector Scheme (RDSS), aimed at improving the operational and financial efficiency of power distribution companies across the country. This agreement marks a continuation of the long-standing partnership of the governments of India and Germany in the energy sector, built over several decades. PFC and KfW have previously collaborated on multiple projects in the distribution sector, and this new facility is expected to further strengthen bilateral cooperation while contributing to the shared goal of both countries of accelerating the energy transition. The loan agreement was signed by Mrs. Parminder Chopra, Chairman and Managing Director, PFC, and Mr. Stefan Wintels, CEO, KfW, in the presence of Mr. Gottfried von Gemmingen, Head of Division for Economic Affairs, German Embassy New Delhi, Mr Sandeep Kumar, Director (Finance), PFC, and other senior officials from both the organisations

 

Speaking on the occasion, Mrs. Parminder Chopra, CMD, PFC, said: “PFC has been at the forefront of financing and enabling reforms in India’s power distribution sector. This new line of credit will help in realising Government’s vision of ensuring reliable, affordable, and sustainable power supply to consumers across the country. We also look forward to working with KfW in new and emerging areas, especially renewables and clean energy, thereby advancing India’s energy transition.”



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