New Delhi, Oct 12 (IANS) Indian Renewable Energy Development Agency Ltd (IREDA) has tied up with KfW, a German development bank, for promoting biomass power generation in the country.
As per the agreement, KfW will provide financial assistance worth 19.971 million euros (Rs.140 crore) to IREDA, the German agency said Monday in a statement.

“The loan aims to accelerate the adoption of environmentally sustainable biomass power and co-generation technologies in India,” it said.

It will promote innovative biomass projects of combustion, gasification, methanation, and co-generation technologies for electricity generation, the statement added.

“Under the loan, up to seven model implementation biomass projects are to be financed.”

The concessional loan has a fixed interest rate with a 40-year repayment period.

The loan agreement is KfW’s third line of credit to IREDA for promoting renewable energy efficiency projects in India.

The first two credits together amounted to 111 million euros (Rs.780 crore).

At present, 12 energy sector projects with KfW loan commitments of more than Rs.7,700 crore are being implemented in India.