State Bank of India (SBI) has signed a €150 million (about ₹1,240 crore) loan agreement with German development bank KfW to facilitate new and upcoming capacity in the solar sector.

Ashwini Kumar Tewari, Managing Director, SBI, said, “The successful closure of phase 1 under the Solar Partnership—Promotion of Solar PV (Photovoltaic) between SBI and KFW paves the way for the current phase 2 of our partnership with KfW.

“With the signing of this facility, we have taken another step in the direction of sustainable financing arrangements for meeting our country’s ambitious renewable capacity goals and upholding environmental and social standards in our endeavours.”

The arrangement of the long-term loan was facilitated by SBI’s investment banking subsidiary, SBI Capital Markets, India’s largest bank said in a statement. This loan will further contribute to India’s “Panchamrit” goals announced during COP26.

In 2015, the Government of India and the Federal Republic of Germany signed a Memorandum of Understanding (MoU) to foster the use of solar energy in India through technical as well as financial cooperation.

Through this MOU, Germany expressed its willingness to provide concessional loans to India in the range of €1 billion through KfW, as per the statement.