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HUDCO Secures Euro 200 Million KfW Loan to Solarise Agricultural Feeders in Maharashtra

India and Germany have strengthened their clean energy partnership with the signing of a Euro 200,000,000 loan agreement to support the solarisation of agricultural feeders in Maharashtra. The financing, extended through HUDCO Ltd., was signed under the Green and Sustainable Development Partnership between the two countries.

The agreement was formalised in the presence of Shri Sanjay Kulshrestha, Chairman and Managing Director of HUDCO Ltd., along with representatives from KfW and the German Embassy in New Delhi. On behalf of Germany’s Federal Ministry for Economic Cooperation and Development (BMZ), KfW is providing the loan to accelerate renewable energy deployment in India’s agricultural power sector.

The funding will support the installation of decentralised solar photovoltaic (PV) parks with an aggregated generation capacity exceeding 502 MWp. The initiative aims to enhance energy security for farmers by ensuring reliable daytime power supply while reducing dependence on conventional grid electricity.

Implemented under the “Energy Efficiency Program III,” the project is expected to increase renewable energy generation, lower power subsidies in the agricultural sector, reduce technical losses for power distribution companies, and improve the overall reliability of electricity supply. In addition to energy benefits, the program is projected to create local employment opportunities and improve daytime working conditions, potentially encouraging greater participation of women in agricultural activities.

The loan signing follows a week of significant clean energy financing commitments. KfW also signed a Euro 150,000,000 loan agreement with the State Bank of India to advance renewable energy and battery energy storage systems (BESS). Additionally, a Euro 48,500,000 loan agreement was concluded with the Government of India to finance West Bengal’s first large-scale BESS project and the expansion of the Goaltore solar park.

These agreements underscore the growing collaboration between India and Germany in advancing renewable energy, energy storage, and sustainable infrastructure, aligning with India’s broader goals of clean energy transition and resilient power systems.