Kerala Green Energy Corridor

April 10, 2023

The Cabinet has given its approval for the Green Energy Corridor (GEC) project, which will be implemented by the Kerala State Electricity Board (KSEB), to secure a loan from the German development bank, KfW. The objective of this project is to facilitate grid integration and power evacuation of Renewable Energy power. The Central government and KfW signed an agreement on November 11, 2022, for the ₹1,457-crore Kerala GEC project.

Tripartite agreement to be signed

To move the loan proposal forward, a tripartite agreement will be signed by the State government, KSEB, and KfW. The Law and Finance departments have given the go-ahead for the proposal. At current rates, the project will be eligible for a KfW loan of 102.11 million euros (around ₹916 crore) at 3% to 4% interest. A Central government grant of ₹138.71 crore will also be available for the project.

Three GEC projects to be undertaken

Three GEC projects will be undertaken under the programme. These include the North Green Power Corridor Project for Wayanad, Kannur, and Kasaragod districts, the Attappady Green Power Corridor Project in the tribal areas of the Attappady, Agali, and Kottathara regions, and the Ramakkalmedu Green Power Corridor Project, which will benefit Idukki district.

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