The loan has been provided via the International Bank for Reconstruction and Development, and has a 20-year term including an initial five year grace period before payments are required.

The World Bank noted that the Rampur scheme does not call for construction of a dam or desilting chambers as it is being built downstream of the 1500MW Nathpa Jhakri plant.

Adit excavation for the project is underway and the tender process for mechanical and electrical equipment has reached the pre-qualification stage. The Rampur project will have six 68.7MW units.

SJVN is a joint venture between the national government and the state government of Himachal Pradesh, and was originally established (under a different name) to build the Nathpa Jhakri scheme. Through the JV, the national government will be guarantor of the loan, the World Bank said.