State-run Tehri Hydro Development Corporation (THDC) on Thursday said it had signed an agreement for a $648 million (about Rs. 3,000 crore) loan with the World Bank for funding the 444 MW Vishungad Pipalkoti power project.
The loan includes $638 million for the project and $10 million as the capacity building and institutional strengthening component. The project is scheduled for commissioning in 2016 and will contribute 444 MW of peaking power to the Northern Grid during the XII Plan, a statement by Tehri Hydro Development Corporation said.
THDC is executing projects with an aggregate capacity of over 10,000 MW in Uttarakhand, Maharashtra and Bhutan. The Vishnugad Piplakoti power project is to be funded through internal resources of the corporation, equity support from the Central and Uttar Pradesh governments and the World Bank loan. The electricity generated from the project will be supplied to Punjab, Haryana, Rajasthan, Uttar Pradesh, Himachal Pradesh, Uttarakhand, Chandigarh, Delhi and Jammu and Kashmir. THDC (Tehri Dam & Hydro Electric Project) is a joint venture between Central and Uttar Pradesh governments.
Uttarakhand Government will get a royalty of 12 per cent or about Rs.90 crore ($20 million) annually. The assistance will be used to build a 65 metre diversion dam in Chamoli district of Uttarakhand to create a reservoir in the Alaknanda river along with a 13.4 km headrace tunnel.
The loan will also be utilised to build a 3 km tailrace tunnel that will take all the diverted water back to the river. “The project is expected to have minimal negative impacts on local communities and environment,” the statement said.
