ADB said earlier this year it was reviewing the funding proposal, which was then envisaged for 856MW of installed capacity in four projects but is now attached to 808MW. The full loan amount sought was approved.
The multi-tranche loan is attached to the Himachal Clean Power Development (CPD). The facility concept will enable ADB to 'engage the state government in a continuous long-term dialogue on its clean energy policies', the bank said.
There were previously listed four run-of river projects in the facility concept: Songtong-Karcham (402MW); Kashang (243MW); Sawra Kuddu (111MW); and Sanj (100MW).
ADB said that, at this stage, two projects have been identified as ready for financing from the first loan tranche of US$150M: construction of Sawra Kuddu, on the Pabber river in Shimla district; and civils works for the Kashang I (65MW) project in Kinnaur district.
The first loan is for 25 years, and ADB total loan package of US$800M is available to be drawn on for eight years. The loan package is also to help enable training, monitor programme and project implementation as well as building the plants.
Overall development costs of all the projects is approximately US$1.5B and US$450M is to be provided by the state government. The balance of US$250M is to be provided by other financial institutions, the bank added.
The state has about 20,415MW of hydro power potential, a quarter of India's total, and only 6150MW has been developed.
ADB undertook appraisal work on Himachal CPD over March-April. Fact finding studies were undertaken just under a year ago. The approval for the first loan tranche was to have been sought by August, originally, with the others over 2009-12.
