AP got a major boost in the power sector, Germany has agreed to extend Rs 476 crore interest-free loan for development of a green energy corridor in the state. The AP Transco has been identified as the developer for the first of its kind project in the country. The green corridor will evacuate power generated by solar and wind power projects which are under construction in Rayalaseema districts.
The funds will be utilized for the green power corridor in Anantapur, Kurnool, Kadapa and Chittoor districts, where many solar and wind power projects are coming up. This will be the first green corridor in the country with dedicated transmission and distribution network.
The German government has already participated in the funding of Krishnapatnam thermal power project and the green corridor will be the second big investment by Germany in Andhra Pradesh. The financial assistance comes without any interest except covering the foreign exchange fluctuations.
“This will work out at about one per cent and the state was given three years to complete the project,” P Satyamurthy, director finance of AP Transco, told TOI after signing the agreement with the German government in the presence of Prime Minister Narendra Modi and German Chancellor Angela Merkel in New Delhi .
The green energy corridor will also serve as a major transmission line to evacuate power generated in wind power projects in Anantapur in AP, Tamil Nadu and Karnataka.
