In the State cabinet meeting on Tuesday chaired by Chief Minister Eknath Shinde, the Maharashtra government decided to enter into an agreement with KfW Company for loans at a fixed interest rate for solar power projects with a capacity of 390 MW.
The expenditure for these projects has been approved at ₹1494.46 crores, instead of the previously estimated ₹1564.22 crores. According to the central government’s guidelines, counterpart funding for the project should be at least 30 per cent. Therefore, the revised financial pattern approves that the loan amount should be 70 per cent of the project cost instead of 85 per cent.
KfW Company will provide a loan of €130 million at a fixed interest rate of 2.84 per cent annum, repayable within a maximum of 12 years, instead of the earlier proposed 0.05 per cent. These projects will be set up in the districts of Yavatmal, Washim, and Chandrapur.