The World Bank approved a US$400 million loan September 13 to finance construction of the 412-MW Rampur hydroelectric project on the Satluj River in India’s Himachal Pradesh State.
The loan to developer Satluj Jal Vidyut Nigam Ltd. (SJVN) has 20 years to maturity including a five-year grace period.
The bank said the run-of-river project, which requires no dam or reservoir, is to provide renewable, low-carbon energy to India’s power-short Northern Electricity Grid. It will reuse tailrace waters from SJVN’s 1,500-MW Nathpa Jhakri project to generate 1.77 million kWh annually. (HNN 9/11/07)
SJVN Chairman H.K. Sharma said the developer has set up systems to ensure project-affected families and local communities acquire a continuing stake in development initiated by Rampur. Additionally, Himachal Pradesh is to receive 12 percent of project power as a royalty valued at US$12 million per year.
In April, SJVN signed a memorandum with India’s Power Ministry, agreeing to construction targets, including excavation of a 15-kilometer headrace tunnel by February 2008. (HNN 4/12/07) An electro-mechanical works contract is expected to be issued in August. (HNN 5/24/06)
A 3.8 billion rupee (US$83 million) headrace tunnel contract was awarded in February to Patel-Gammon JV of India. The project is to feature six 68.67-MW vertical Francis turbines and synchronous generators.