Government of India and KFW Sign Loan Agreements Worth Euro 125 Millions tp Himachal and Andhra Pradesh

Government of India and KFW (Federal Republic of Germany) Sign Loan Agreements Worth Euro 125 Millions for KFW Assisted Himachal and Andhra Pradesh Green Energy Corridors’ Projects 

Government of India and KFW (Federal Republic of Germany) signed here yesterday two loan agreements worth Euro 125 Millions for financing two projects under the Green Energy Projects (GEC) programme- Himachal Pradesh (Euro 57 million) and Andhra Pradesh (Euro 68 million). Loan agreements were signed by Mr. S. Selvakumar, Joint Secretary (Bilateral Cooperation), Department of Economic Affairs, Ministry of Finance on behalf of the Government of India and Mr. Roland Sillar, Member, KFW Board Management, from German side. Project agreements were also signed by Mr. S.L. Sharma, MD, HPPTCL and Mr. P. Satyamoorty, Director (Finance), Andhra Pradesh TRANSCO relating to their respective State(s) 

With the Green Energy Corridors, the intra-State network will feed the renewable energy to the respective State grids and the high capacity transmission corridors and inter-State network will connect major renewable energy pockets with the national grid.

Renewable Energy is one of the key areas of Indo-German partnership mentioned in the Joint Statement of Hannover in April 2015 and with financing of the transmission infrastructure of Renewable Energy projects, the Central and State grids will be strengthened to evacuate more green energy. 

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Auction for Sale (Re-Issue) of Government Stocks 

            The Government of India have announced the Sale (re-issue/issue) of (i) “7.68 per cent Government Stock 2023” for a notified amount of Rs. 2,000 crore (nominal) through price based auction, (ii)“7.72 per cent Government Stock 2025” for a notified amount of Rs. 7,000 crore (nominal) through price based auction, (iii) “New Government Security maturing on December 19, 2034” for a notified amount of Rs. 3,000 crore (nominal) through yield based auction, and (iv)“8.17 per cent Government Stock 2044” for a notified amount of Rs. 3,000 crore (nominal) through price based auction. The auctions will be conducted using multiple price method. The auctions will be conducted by the Reserve Bank of India (RBI), Mumbai Office, Fort, Mumbai on October 09, 2015 (Friday).

            Up to 5% of the notified amount of the sale of the stocks will be allotted to eligible individuals and Institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.

            Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on October 09, 2015. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.

            The result of the auctions will be announced on October 09, 2015 and payment by successful bidders will be October 12, 2015 (Monday).   

            The Stocks will be eligible for “When Issued” trading in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India (RBI), vide circular No. RBI/2006-07/178 dated November 16, 2006 as amended from time to time.