Government of India on Tuesday recommended a financing facility of Rs 3184 crore through World Bank for Himachal Hydro Power and Renewable Power Sector Development Project.

The program was accepted by Department of Economic Affairs, (DEA), Ministry of Finance, GoI in 104th meeting of its Screening Committee on Tuesday and recommended to World Bank for financing. This financing would come in the pattern of 90 percent grant and 10 percent loan to Government of Himachal Pradesh. Chief Minister Jai Ram Thakur Tuesday expressed his gratitude towards government of India for this.

Additional Chief Secretary MPP & Power Ram Subhag Singh led  the team comprising of MD HPPTCL R.K. Sharma, Special Secretary Power Hem Raj Bairwa and other officers from energy sector utilities in presenting the proposal to DEA.

The project aims at holistic development of power sector of the state through investment in all three segments of power sector i.e. Generation, Transmission and Distribution.  On generation part a funding of Rs 1600 crore will come to the ongoing Shongtong Karchham HEP 450 MW. Project once commissioned would earn revenue of Rs 500 crore per annum to the state exchequer.  This is by far the biggest project taken up by state government without the participation of any Central Public Sector undertaking and was facing financial hardships due to non availability of adequate funds. Distribution system  will get a funding of Rs 937 crore and  would  be used towards automation and strengthening of distribution network in 13 different towns of Himachal namely Solan, Baddi, Nalagarh, Nahan, Poanta Sahib, Mandi, Sundernagar, Bilaspur, Kullu, Manali, Una, Parwanoo and Hamirpur. In total 2.60 lakh consumers will be benefitted.

A capacity building component amounting to Rs 112 crore would flow to all power utilities and Directorate of Energy for establishment of facilities and development of capacities for efficient management of complex power system by all the utilities together.