World Bank provides $648 m loan for dam in India

World Bank provides $648 mn loan for THDC's power project
Published on Fri, Jul 01, 2011 at 20:12 | Source : PTI
www.moneycontrol.com/news/business/worldbankprovides36648mnloanforthdcspowerproject_562059.html

[THDC is the operator of the Tehri Dam in India. For information about
civil society concerns about Vishnugad Pipalkoti, please visit
http://matujan.blogspot.com/2008/07/about-vishnugad-pipalkoti-hydroelectric.html.]

The World Bank will extend a loan of USD 648 million (about Rs 2,888
crore) to state-run THDC India for constructing the Vishnugad Pipalkoti
Hydroelectric Plant on the Alaknanda river.

This hydro power plant on the Alaknanda river is expected to generate
1,665 million units of electricity annually. "The project will help meet
the sharp daily spurts in demand from households and industries at peak
electricity consumption time. This will represent a valuable addition of
peaking power to India's Northern Grid, which faces severe power
shortages at high-consumption times," the World Bank said in a statement.

The 444 MW Vishnugad Pipalkoti Project would also help reduce India's
greenhouse gas emissions by 1.6 million tonnes each year, compared to a
thermal plant of the same capacity, the multilateral lender noted.

The project will build a 65-meter diversion dam near Helang village in
Chamoli district of Uttarakhand to create a small reservoir in the
Alaknanda River. "Hydropower is one of cleanest means of electricity
generation and the Vishnugad Pipalkoti Hydro Electric Project is a
priority project that will help relieve power shortages in India," Joint
Secretary in the Department of Economic Affairs (DEA) Venu Rajamony said.

The negotiations for the loan, held between THDC and World Bank,
concluded on June 9, 2011. With this, the project has achieved full
financial closure. "The project (Vishnugad) will also provide
Uttarakhand with a royalty of 12% of the power generated, which is
estimated to be around Rs 90 crore (USD 20 million) each year at
expected tariffs," the statement noted. THDC India is into hydro power
generation.
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