World Bank sanctions 400 million loan for Himachal hydel project

Himachal Pradesh8217;s drive to harness state8217;s hydel power potential is expected to get a big boost with the World Bank approving a 400 million loan for the Rampur Hydel Project, a public sector project on River Satluj. The project will provide renewable, low carbon energy to the northern electricity grid states.

This is the second biggest loan installment sanctioned by the World Bank after it sanctioned one for the 1,500 MW Nathpa Jhakri Hydel Project, an upstream project executed by the Satluj Jal Vidyut Nigam. The agency, a joint venture of the Centre and state Government, is now working on the Rampur project.

SJVN Chairman and MD H K Sharma said, 8220;The Rampur Project will help meet the country8217;s power demand and encourage investments.8221;

The project is expected to generate 1,770 million units of power per annum on its completion by January 2012. Twelve per cent free power will be given to Himachal Pradesh as royalty. Sharma said a rehabilitation package for the displaced has been announced.