The Government of Germany will provide financial assistance of Rs 1,630 crore to Himachal Pradesh Government for Thana Plaun Project under “Himalaya Hydropower Program”.
During the Indo-German annual negotiations 2013 under Indo-German bilateral development cooperation program held during July in New Delhi, DK Sharma, Managing Director, Himachal Pradesh Power Corporation limited (HPPCl) had presented a request for financial assistance to the Government of Germany for 191 MW Thana Plaun Hydro Electric Power Project of HPPCl.
This project is located on river Beas, around 25 km downstream of Mandi town. The Department of Economic Affairs, Central Government has informed Himachal Pradesh Government and HPPCl that the Government of Germany has committed a financial assistance of Rs 1,630 crore for project. Of this amount, Rs 1,618 crore will be on the part of reduced interest loan and the balance Rs 12 crore will be the grant for carrying out further technical studies of the project.
DK Sharma said the Thana Plaun Project of HPPCl had initially been conceived as run-of-the-river project with the installed capacity of 141 MW. He said that he took steps to optimise the design and layout of the project. After optimisation, typical run-of-the-river project with Head Race Tunnel has been converted into a dam-toe power house layout. As a result, after discussions with the Central Electricity Authority, Government of India, the installed capacity has been enhanced from 141MW to 191 MW.
Managing director of the company stated that KfW, a development financing agency wholly owned by the Government of Germany, will now commence the technical, environmental and social evaluation of the Thana Plaun Hydro Electric Project. He said that this evaluation is expected to be completed by June 2014. HPPCl expects to obtain all regulatory approvals by September 2014 and to sign the loan agreement with KfW by September 2014. The project construction is expected to commence by January 2015 and is expected to be completed in about 4 years’ time thereafter.