Asian Development Bank to lend $315m for 450MW hydroelectric project in India

Asian Development Bank (ADB) has signed an agreement with officials of the Indian government to provide a $315m loan for the development of a 450MW hydro project in the state of Himachal Pradesh.

The Shongtong Karcham Hydroelectric Project is located at Kinnaur district of the hill state and will cost a total of $750m.

The ADB assistance is a 25-year term loan under the Himachal Pradesh Clean Energy Development Investment Program that seeks to expand power supply in the state.

Government of Himachal Pradesh has agreed to offer counterpart funds of about $235m for the project with German development bank KfW to pitch in with $150m.

Commenting on the funding Department of Economic Affairs Joint Secretary Prabodh Saxena remarked that the project will provide enough power to meet the state’s demand as well as exporting power.

GOI finance ministry economic affairs department joint secretary Prabodh Saxena said, "This program not only benefits Himachal Pradesh by supplying affordable, reliable power to its residents, but will enable the export of excess power to the rest of the country for the benefit of power deficient states."