Shimla: A US $ 400 million loan from the World Bank for the 412 MW Rampur project has been approved, VK Verma, deputy general manager Satluj Jal Vidyut Nigam told myHimachal.
The loan would help the run of the river project that would run in tandem with the 1500 MW Natpha Jhakri project to achieve financial closure, he said.
The Rampur project would not require any storage dam structure as it will only use the desilted tail water of the Jhakri project, said Verma.
Work on the project has commenced as major tunneling, power house and other civil works contract have been awarded thorough international competitive bidding route.
The hydro plant, targeted to be commissioned by 2011, is expected to generate 1,770 million units of electricity in a year.
The loan provided by the International Bank for Reconstruction and Development would be for a twenty year period which includes a five year grace period said Verma. SJVNL is a joint venture between the central government and the state of Himachal Pradesh.