Germany to invest $1.3bn for renewable energy sources in India

The federal governments of Germany and India have collaborated to enhance the renewable energy infrastructure of the latter by making an investment of $1.3bn by Germany.

The country will fund the renewable energy projects through soft loans over a 6-year period starting 2014.

Funds were allotted through a joint declaration of intent agreement signed by Union Minister for Renewable Energy Farooq Abdullah and parliamentary state secretary in the Federal Ministry for Economic Cooperation and Development Gudrun Kopp.

The agreement was concluded during the inter-governmental consultation that was jointly chaired by Indian Prime Minister Manmohan Singh and German Chancellor Angela Merkel, reported PTI.

It is said to be a part of the development co-operation pact between the two countries.

Also, the alliance between the two countries that dates back to five decades is aimed towards improving renewable energy resources, protecting environment and combating climate change.

Indian Ministry has stated that the alliance would provide financial and technical assistance to integrate the power grids besides speeding the construction of power lines to efficiently use electricity generated by renewable energy sources.

Kopp noted that developing the power transmission lines and efficient feeding of electricity generated by renewable energy sources into the power grid are the major challenges for Indian and Germany is keen to forward its aid.

The development of renewable energy sources is the common goal for both the countries, Kopp said, adding that the countries have no other alternative to tackle climate change.

Building up the renewable energy capacity in India is significant for the country to mark power generation harmony besides protecting environment, concluded Kopp.