Kullu (Himachal Pradesh), Nov 27 (IANS) Work on the Asian Development Bank funded-Sainj hydropower project in Kullu district in Himachal Pradesh started Friday, an official said.
“The chief minister (Prem Kumar Dhumal) laid the foundation stone this (Friday) afternoon,” said Tarun Kapoor, managing director of the state-run Himachal Pradesh Power Corp, which is setting up the plant.

“Seventy percent of the construction cost project will be borne by the ADB in shape of loans,” Kapoor told IANS.

The powerhouse of the Rs.746-crore run-of-the-river project is located on the Sainj river, a tributary of the Beas, some 55 km from here.

“The project will annually generate about 400 million units of power and it will be take 56 months to be completed,” he said.

The project was allotted to Jindal Hydropower in 2002. However, when the company failed to complete its milestones within the agreed time frame, the state government cancelled the contract.

Thanks to its abundant water resources, Himachal Pradesh has a hydropower generation potential of 20,416 MW, about 25 percent of India’s total potential in this energy sector.

Of this, around 6,500 MW has been developed.

Eleven projects with a combined generation capacity of 1,124 MW are under execution by the Himachal Pradesh State Electricity Board, whereas 15 projects with a capacity of 1,738 MW are under execution by private companies.