Germany has committed a soft loan of Euro 201.50 million (Rs.1,630 crore) loan to state-run Himachal Pradesh Power Corporation Limited (HPPCL) for its upcoming hydropower project in the state, an official said in Shimla on Monday. "Germany has committed a financial assistance for the 191 MW Thana Plaun hydro electric power project located near Mandi town. An agreement to this regard was signed recently in New Delhi," HPPCL managing director DK Sharma said in a statement.
Out of this, he said, Euro 200 million (Rs.1,618 crore) will be by way of reduced interest loan and the balance Euro 1.5 million (Rs. 12 crore) will be by way of grant for carrying out further technical studies of the project. Sharma said KfW, a development financing agency owned by the government of Germany, would now commence technical, environmental and social evaluation of the project.
"This evaluation is expected to be completed by June 2014. We are expecting to obtain all regulatory approvals by September 2014 and to sign the loan agreement with KfW in the same month," he said. The project is expected to be completed by 2019.
The other hydropower projects the HPPCL has taken up include the 450 MW Shongtong-Karchham hydropower project in Kinnaur district, the 100 MW Sainj in Kullu district, Sawra-Kuddu hydroelectric project (111 MW) in Shimla district and Stage I, II and III of Kashang project (195 MW) in Kinnaur.