The Government to Government Umbrella Agreement between the Government of India and the Government of the Federal Republic of Germany concerning Financial Cooperation in 2016 (II) under the Indo-German Development Cooperation was signed yesterday to formalize an amount up to Euro 200 million for the Financial Cooperation in form of loan for the project ‘Climate Friendly Urban Mobility III’ and Euro 11 million Accompanying measures in form of grant for four projects. The two major fields of infrastructure and power where both countries signed-up for cooperation are Urban Infrastructure in Odisha and creation of Green Energy Corridor in Maharashtra. In principle the Indian German Governments enter four agreements worth 200 Euros.
It was agreed upon by German Government to enter a Loan Agreement for the project “Sustainable Urban Infrastructure Development Odisha – Phase II for EUR 55 Million Reduced Interest Loan with EUR 2 Million as Grant. The main objective of this project is to improve Urban Infrastructure by linking them with Government priority. The broad objective of the Project is to improve the urban infrastructure of Odisha and to provide better quality of life to the people.
An agreement was also entered to grant a loan for the project “Green Energy Corridor – Intra-State Transmission System in Maharashtra” for EUR 12 million Reduced Interest loan. The broad objective of this project is to put in place a transmission system for evacuating renewable energy.
The other two formal agreements are:
- Loan Agreement for the project “Community based sustainable Forest Management – Component I Manipur” was signed with KfW, Germany for a loan of Euro 15 million. The broad objectives of the Project include restoration of degraded forests in upper watersheds, reclamation of abandoned shifting cultivation areas, biodiversity conservation, water resources conservation and livelihood improvement of forest dependent rural tribal people in the project area.
- Loan Agreement for the project “Madhya Pradesh Urban Sanitation and Environment Programme” for Euro 50 million at reduced interest loan and Euro 2.5 million grant. The broad objectives of this project covers improvement in facilities for water supply, sanitation and sewerage treatment plant in selected towns of Madhya Pradesh, improvement in solid and liquid waste management and disposal systems, improvement of surface drainage systems for flood mitigation in selected towns of Madhya Pradesh.