India’s Himachal Pradesh State has awarded a letter of allotment to Gammon Infrastructure Projects Ltd. to develop the 261-MW Youngthang Khab hydroelectric project on Spiti River in Himachal Pradesh.
In a statement to the Bombay Stock Exchange, Gammon said Himachal Pradesh awarded it the project on a build-own-operate-transfer (BOOT) basis for a 40-year concession period.
Youngthang Khab, in Spiti-Satluj Basin of Kinnaur District, was among 23 hydro projects the state offered to bidders on a BOOT basis. (HNN 6/11/07)
Gammon said it paid the state 530 million rupees (US$12 million) toward 50 percent of the up-front premium for the project. The project is expected to require an investment of 15.1 billion rupees (US$343.8 million), excluding interest.
In the solicitation for Youngthang Khab, Himachal Pradesh reserved the right of equity participation up to 49 percent for projects over 100 MW.
Projects in the solicitation are required to provide the state, free of charge, 12 percent of their power for 12 years, 18 percent of their power for the subsequent 18 years, and 30 percent of their power thereafter to the end of the concession. The remaining power may be disposed of in any manner in accordance with the 2003 Electricity Act.