HPPCL signs a project financing agreement with the ADB for Shongtong Karcham Project

Shimla/ November 19

Government of India (GoI), Government of Himachal Pradesh (GoHP), Himachal Pradesh Power Corporation Limited (HPPCL) and Asian Development Bank (ADB) signed a Loan Agreement for an amount of US Dollars 315 million on November 19 in New Delhi.

The Loan Agreement was executed by Joint Secretary, Department of Economic Affairs Prabodh Saxena on behalf of GOI, by Deputy Country Director, India Resident Mission, ADB Narhari Rao on behalf of ADB, by Managing Director, HPPCL Devendra K Sharma on behalf of GOHP, Director (Finance), HPPCL BCS. Baliga on behalf of HPPCL.

The proceeds of the 4th Tranche will be utilized by Himachal Pradesh Power Corporation Limited for financing interalia the civil works of the 450 MW Shongtong Karcham HEP.  The project is located in Powari village of Kinnaur district of Himachal Pradesh and is expected to be commissioned by the year 2017.

Managing Director of HPPCL Devendra K Sharma also informed that HPPCL is currently in negotiation with ADB for the fifth and the last Tranche of the loan amounting to US Dollars 68 million.  These negotiations are expected to be completed early.

Managing Director, HPPCL stated that the agreement would go a long way in exploitation of hydroelectric power potential of the state.