Power Finance Corporation (PFC) has signed a loan agreement for €150 million (~$175.13 million) with KfW Development Bank, a German state-owned investment and development bank.

PFC will utilize the loan proceeds to finance projects under the Indian government’s Revamped Distribution Sector Scheme (RDSS).

According to the National Smart Grid Mission data, 8.76 million smart meters have been installed under RDSS as of February 2025.

In January 2025, the Japan Bank for International Cooperation (JBIC) signed an agreement to set up a credit line of JPY120 billion (~$770.64 million) with  PFC. JBIC’s share of the total credit line will be JPY72 billion (~$462.38 million).

Renewable energy in India is increasingly being viewed as a mainstream segment by lenders who are eager to finance various clean energy projects. Capital is no longer a constraint for well-governed companies with a good track record.

In the financial year 2025, PFC primarily lent to the government sector, which accounted for 77% of the loans disbursed, with the remainder going to the private sector. Its loan assets totaled ₹5.43 trillion (~$63.43 billion), and loan disbursements reached ₹1.68 trillion (~$19.62 billion).

As of March 31, 2025, PFC had a borrowing mix of ₹888.77 billion (~$10.38 billion) of rupee term loans from banks/financial institutions (19%), ₹891.32 billion (~$10.41 billion) of foreign currency borrowings (19%), and ₹2.61 trillion (~$30.49 billion) of domestic bonds (56%).

On June 30, 2025, the Ministry of Power announced the launch of a task force to establish the India Energy Stack under the RDSS program. The initiative aims to create a unified, secure, and interoperable digital infrastructure for the country’s energy sector.

In March 2025, the Ministry of Power informed Parliament’s Standing Committee on Energy that it requires a two-year extension of the RDSS program, aimed at introducing operational efficiencies and financial discipline into India’s power distribution sector.