"Maharashtra Government to Secure Fixed-Interest Rate Loans from KfW for Solar Power Projects"

In a State cabinet meeting chaired by Chief Minister Eknath Shinde, the Maharashtra government approved a plan to enter into an agreement with KfW for loans to finance solar power projects totaling 390 MW capacity.

The expenditure for these projects has been revised to ₹1,494.46 crore from the previously estimated ₹1,564.22 crore. In line with central government guidelines, which require at least 30 percent counterpart funding, the revised financial plan now allocates 70 percent of the project cost to the loan, rather than the 85 percent initially proposed.

KfW will provide a loan of €130 million at a fixed interest rate of 2.84 percent per annum, repayable over a maximum of 12 years. This is a revision from the earlier proposed rate of 0.05 percent. The solar projects will be implemented in the districts of Yavatmal, Washim, and Chandrapur.

HBL