$800 loan cleared for clean hydro power generation

The Asian Development Bank has cleared a loan of US $800 million for investment in construction of run-of-river hydropower projects in Himachal Pradesh.

The state is expected to get a major boost in the hydro power sector, especially in harnessing at least 808 megawatts of hydropower, in the next eight years, during which the loan would be rolled out in a phased manner.

At the board meeting of ADB at its Manila headquarters, the bank cleared the loan investment for Himachal which would be repayable in 25 years, said Managing Director of Himachal Pradesh Power Corporation Tarun Kapoor.

“Though the bank had already given its approval in principle, the stage of board approval was remaining which was cleared in the meeting on October 23.

The first loan agreement for the two projects being executed by the Corporation is expected to be signed with the ADB in 15 days,” said Kapoor.

Since the multi-tranche financing facility of the ADB in respect of this loan also allows the state government to take help from the bank in its clean energy policies, agreement with the bank would bring along strong prospects for the state to earn carbon credits out of clean energy development mechanism in hydro power sector.

The loan is expected to come to the state in four installments. The first installment of US $150 million would be utilized in the construction of 111-megawatt Sawra Kuddu Hydro Power Project being constructed by the power corporation on Pabbar river.

The other project to be funded by the ADB would be 65-MW Kashang-I in Kinnaur district.

The next three installments would be allocated by the bank to the power corporation, through Government of India as and when new projects are taken up.

Power Secretary Ajay Mittal said, “The state would look to utilise bank’s funding for other hydro projects like Shong-Thong, Kashang II, Karcham and Sainj that are next in line to be developed by the power corporation.”

(Source: Expressindia.com)

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