The Himachal Pradesh Power Corporation and the Asian Development Bank on Monday signed a loan agreement of US $ 315 million for executing the 450-MW Shongtong Karcham Hydro Electric Project. The project is located in Powari village of Kinnaur district of the State and is expected to be commissioned by 2017. This was the 4th tranche of loan and would be utilised for financing the civil works of the project. The Power Corporation is also negotiating for getting the 5th and last tranche of loan amounting to $68 million for finally completing the project, said a company spokesman.

Himachal Power Corporation Managing Director Devendra Kumar Sharma thanked the Ministry of Finance and Ministry of Power, Government of India, Department of Power, Government of Himachal Pradesh, and the Asian Development Bank for sanctioning the loan and signing of the agreement on a fast track basis.