The Asian Development Bank (ADB) signed a loan agreement with the Government of India to offer $315m in assistance for the development of the Shongtong Karcham Hydroelectric Project.
The 450MW project is located in the Kinnaur district of Himachal Pradesh in India. ADB is providing the 25-year term loan under the Himachal Pradesh Clean Energy Development Investment Program, which is an $800m multitranche financing facility.
This loan will form a part of the fourth tranche under the program that seeks to expand power supply in the state.
ADB’s India Resident Mission deputy country director Narhari Rao remarked, “Himachal Pradesh’s focus on hydropower development will provide jobs to residents and will further the state’s and the country’s goal of maximizing this clean, indigenous energy source to help meet its energy needs.”
Joint Secretary of the Indian Finance Ministry Prabodh Saxena added, “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.”
The project is expected to cost a total of $750m, with the Government of Himachal Pradesh pitching in with $235m.