• PAGE ONE
• INDEX
• HOME

Germany grants Rs 670-cr loan

Our Bureau

NEW DELHI, Oct. 29

INDIA will receive German assistance aggregating to Rs 670 crore for four developmental projects. The two countries, which signed agreements today the ocassion of the visit of Chancellor Gerhard Schroeder, also discussed measures to enhance trade and inv estment flows.

``We discussed all aspects of bilateral trade and increasing investment flows from Germany to India. German companies will try to enhance their investments into India,'' the German Minister of Economics, Mr Werner Mueller, told reporters after a meeting with the Finance Minister, Mr Yashwant Sinha.

The Rs 670-crore assistance is for four projects -- 140 MW Integrated Solar Combined Cycle (ISCC) power project in Rajasthan (DM 250 million), National Pulse Polio Programme (DM 20 million), Import of Fertiliser Muriate of Potash (DM 40 million) and Rura l Water Supply Sanitation and Community Participation Programme, Rajasthan (DM 10 million).

The ISCC power project would demonstrate the efficacy of power generation from solar energy on a large scale and its integration with the combined cycle technology. The Government of India had sanctioned Rs 871.74 crore for the project to promote usage o f non-fossil fuel power sources and reduce the overall shortage of electricity in Rajasthan.

The soft portion of the German loan carries an interest rate of 0.75 per cent per annum and is repayable over a 40-year period, including a grace period of 10 years. The commercial portion carries and interest of 6.13 per cent per annum and is repayable over 10 years, including a grace period of two years.

The German Government will also provide a grant of DM 20 million towards the National Pulse Polio Programme during 2001-02. This is the third tranche of assistance provided by Germany.

A soft loan of DM 40 million will be used to finance import of two lakh tonnes of MoP during this year's rabi season.

The agreements signed today are part of the Indo-German Bilateral Development Cooperation programme which has been in vogue since 1958. Assistance aggregating to DM 1,860 million (RS 3,900) has so far been provided under this programme.

Picture: The German Minister of Economics, Mr Werner Mueller, with the Finance Minister, Mr Yashwant Sinha, in New Delhi on Monday.

Picture by Ramesh Sharma