The Indian unit of German lender Kfw plans to double

A top executive at German state bank KfW said its investment in India would more than double to $1 billion over the next few years, with a particular focus on Indian energy and infrastructure projects.

DEG, the lender’s arm focused on private sector companies, has invested about $400 million in debt and equity in India to date.

“India is a market that we consider very important because it offers a good investment climate and has many strong entrepreneurs and developers that we are happy to support,” said Jochen von Froein, Head of Infrastructure & Energy, Global Equity at DEG.

Germany has pledged to provide India with €10 billion by 2022 to help the country meet its climate goals.

India’s total renewable energy capacity increased by 10 gigawatts between April and the end of August, reaching 153 GW.

The country is seeking investments to help it achieve its goal of integrating at least 500 GW of clean energy into the grid by 2030.

Frowein said DEG intends to invest in renewable energy as well as the financial sector and infrastructure projects.

“We are currently actively evaluating investments in renewable energy for commercial and industrial purposes.” Frowein said green hydrogen and power transmission will be important sectors in the future.

Frowein, who declined to provide details on profits, said DEG had made “successful” exits from investments in India.

(source: Reuters)