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, a Memorandum of Understanding (MoU), which was signed in October, 2015, between Indian and Germany has been approved by the Union Cabinet, chaired by the Prime Minister Narendra Modi.
The MoU will strengthen bilateral cooperation between the two countries. Under the agreement, Germany would provide concessional loans of one billion Euros over the next five years through Kreditanstalt fur Wiederaufbau (KfW). The funds of KfW will also be utilised for providing soft loans to the end-users through partner banks, stated an official statement.
The MoU would lead to cooperation in the field of solar rooftops.
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 solar off-grid applications to improve the access to clean and sustainable energy was highlighted in the MoU.