ADB sanctions $800-mn loan for Himachal PradeshNovember 10th, 2008 - 8:57 pm ICT by IANS
Shimla, Nov 10 (IANS) The Asian Development Bank (ADB) and the Himachal Pradesh government Monday entered into an agreement under which the bank sanctioned a loan of $800 million to strengthen its hydropower potential, the state government said.The loan package will help finance the construction of four medium to large run-of-river hydropower generating plants that will bring in combined capacity of 808 MW for the hill state, the government said in a statement.
The loan has been sanctioned under Himachal Pradesh Clean Energy Development Investment Programme.
The projects identified by the lender and the state government for financing include the Sawra-Kuddu hydroelectric project (111 MW) in Shimla district, Stage I, II and III of Kashang project (195 MW) in Kinnaur district, and Shongtong-Karchham project (402 MW), also in Kinnaur.
The annual generation from these projects would be 3,434 million units.
The total estimated cost of these projects is $1.5 billion, out of which ADB has financed $800 million in the form of a multi-tranche financing facility, which will be allocated based on the readiness of the project.
The loan has a 25-year repayment period.
The hill state has abundant water resources, with five major rivers flowing from the western Himalayas. Its power generation potential is 20,415 MW, about 25 percent of India’s total hydropower potential, out of which only 6,150 MW has been developed.
In 2006, the state government approved a hydropower policy that aims to make Himachal Pradesh the “hydropower state” of India.