Teesta Low Dam Stage 3 is one of 11 projects totalling 4357MW of capacity in NHPC's X plan, which the company expects to complete by the year 2007.
NHPC will arrange a term loan with the Indian government to help finance the work.
NHPC already has eight hydroelectric stations with a combined capacity of 2175MW, and it anticipates installing a further 49,000MW over the next 20 years.
