German lending agency to fund Andhra's green energy corridor
news Monday, May 04, 2015 - 05:30
German lending agency KFW and the central government have agreed to fund the proposed green energy corridor in Andhra Pradesh, which is aimed at transforming the state into a renewable energy hub. KFW has communicated to the state government that it will sanction Rs.500 crore at a concessional rate of interest. According to the State Energy Conservation Mission, the union power ministry will provide Rs.515 crore to develop the Rs.3,500 crore green energy corridor. Ajay Jain, secretary for energy, industries and infrastructure, said on Sunday that the green corridor would be developed to support the upcoming solar and wind projects with an initial cost of about Rs.1,289 crore. The state is making efforts to secure necessary funding with the support of the centre and international financial institutions. The AP Transco and Discoms would initiate steps soon to mobilise the balance investments from the Power Finance Corporation (PFC) and the Rural Electrification Corporation (REC). The government plans to turn the state into a renewable energy hub in the country in the next four years. As part of this plan, it has set a target of 5,000 MW solar power and 4,000 MW wind power by 2019. Andhra Pradesh, which claims to be the number one in the country in the area of energy efficiency and energy conservation within the short span of over 10 months, will constitute a taskforce for expediting the renewable energy projects. Jain said the state had also initiated measures to develop the world's biggest solar park with a capacity of around 2,500 MW, with support of the central government, public undertaking sectors like the National Thermal Power Corporation (NTPC), NVVL, and the ministry of new and renewable energy (MNRE). It is also contemplating to develop 1,000 MW solar power parks in the districts of Anantapur, Kadapa and Kurnool. The solar park will have various zones for solar power projects, manufacturing, research and development and training centres. The state will extend all facilities and fiscal incentives provided by central government/National Solar Mission to the manufacturers. A Special Purpose Vehicle will be established for development of infrastructure and management of the solar park.