The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved a Memorandum of Understanding (MoU), which has been signed in October, 2015, between Indian and Germany, to expand bilateral development cooperation in the field of Solar Energy by increasing use of solar energy in India through technical as well as financial cooperation.
The MoU will help in strengthening bilateral cooperation between the two countries.
Under the agreement, Germany would provide concessional loans in the range of one billion Euros over the next five years through Kreditanstalt fur Wiederaufbau (KfW). The funds of KfW will also be utilized for providing soft loans to the end-users through partner banks.
The MoU would lead to:-
(i). Cooperation in the field of solar roof tops;
(ii). The development of solar parks or solar zones (if possible in close proximity to the Green Energy Corridors financed by KfW under Indo-German Financial Cooperation) and
(iii). Solar off-grid applications to improve the access to clean and sustainable energy.