Rs 688 Crore Dhaulasidh Project Strikes Financial Closure

Shimla: Funded at a debt equity ratio of 80:20, the under construction 66 MW Dhaulasidh hydroelectric project estimated to cost Rs 688 crore has achieved financial closure, top management of SJVN, a central public sector undertaking, disclosed here today

Making the disclosure Mr Nand Lal Sharma, Chairman & Managing Director, SJVN stated Financial Closure for 66 MW Dhaulasidh Hydro Electric Project situated in Hamirpur & Kangra Districts of Himachal Pradesh has been successfully achieved. The Financial Closure of 66 MW Dhaulasidh Hydro Electric Project been stamped with Himachal Pradesh State Co-operative Bank.

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He added that the project cost of Dhaulasidh HEP is Rs. 688 crores and is being financed through Debt Equity Ratio of 80:20. As per the Loan Agreement, Himachal Pradesh State Co-operative Bank. will provide the debt part at an effective interest rate of 6.71% per annum.

“Financial Closure is a stage of project development when all the conditions of a financing agreement are fulfilled prior to initial availability of funds by the financers,” said Sh. Nand Lal Sharma.

Foundation Stones of 66 MW Dhaulasidh Project was laid by Prime Minister  Narendra Modi on 27th December, 2021. Construction of the project is in full swing and on completion it is projected to generate 304 Million Units in a 90% dependable year. The levelized tariff for the generated electricity is estimated at Rs. 4.46 per unit.

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