New Delhi: Power Finance Corporation (PFC) Limited, a leading state-owned financier in India’s power sector, signed a €150 million loan agreement with German development bank KfW. The funds will support projects under the Government of India’s Revamped Distribution Sector Scheme (RDSS), aimed at strengthening electricity distribution networks across the country.
Strengthening India–Germany Energy Collaboration
The agreement reinforces the long-standing partnership between India and Germany in the energy sector. KfW, Germany’s largest promotional bank, has collaborated with Indian institutions on multiple energy initiatives, contributing to sustainable economic and environmental development. This new loan strengthens bilateral cooperation, promoting India’s clean energy transition.
Funding Power Distribution Reforms
Loan proceeds will finance RDSS projects, a flagship government program launched in 2021 with an outlay of ₹3,03,758 crore. RDSS focuses on improving operational and financial efficiency of distribution companies (DISCOMs) and ensuring reliable, affordable, and sustainable electricity supply nationwide. The PFC–KfW partnership aims to reduce losses in the distribution sector and enhance consumer services.
Leadership Driving India’s Energy Transition
The agreement was signed by Parminder Chopra, Chairman and Managing Director of PFC, and Stefan Wintels, CEO of KfW, in the presence of Gottfried von Gemmingen, Head of Division for Economic Affairs, German Embassy, New Delhi. Parminder Chopra stated, “This new line of credit will help realise the government’s vision of reliable and sustainable power supply for all. We also look forward to collaborating with KfW in renewables and clean energy, advancing India’s energy transition.”
About PFC
Power Finance Corporation (PFC), a Navratna PSU under the Ministry of Power, is India’s leading financial institution dedicated to the power sector. Headquartered in New Delhi, PFC provides financial support for generation, transmission, distribution, and renewable energy projects, playing a central role in strengthening India’s electricity infrastructure.
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