The Cabinet on Wednesday gave its nod for inking an agreement with the German development bank, KfW, for securing a loan for the Green Energy Corridor (GEC) project being implemented by the Kerala State Electricity Board (KSEB).
The tripartite agreement will be signed by the State government, KSEB and KfW.
The Central government and KfW had signed an agreement on November 11, 2022 for the ₹1,457-crore Kerala GEC project. To take the loan proposal forward, an agreement needs to be signed by the State government and the KSEB with the German bank.
At the current rates, the project will be eligible for a KfW loan of €102.11 million (approximately ₹916 crore) at 3% to 4% interest. A sum of ₹138.71 crore will be available as a Central government grant.
Both the Law and Finance departments had given the go-ahead for the proposal, Power department sources said.
The scheme will facilitate grid integration and power evacuation of Renewable Energy (RE) power.
Three GEC projects will be undertaken under the programme; the North Green Power Corridor Project for Wayanad, Kannur and Kasaragod districts, the Attappady Green Power Corridor Project for the tribal areas of the Attappady, Agali and Kottathara regions and the Ramakkalmedu Green Power Corridor Project which will benefit Idukki district.
Kerala needs to award the works before November 23, 2023, for securing the Central grant.
