By IANS,
New Delhi : The government Thursday approved the Rs.249.15 billion Vishnugad Pipalkoti hydroelectric project (HEP) on the Alaknanda river in Uttarakhand.
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Manmohan Singh, met for the first one time after Congress-led United Progressive Alliance (UPA) government won the trust vote in the Lok Sabha Tuesday.
The Tehri Hydro Development Corp (THDC), a joint venture between the centre and Uttar Pradesh, will execute the project, which falls in Chamoli district of Uttarakhand.
The project, likely to be commissioned by 2013, will generate 444-mega watt electricity and cater to the northern states, mainly Uttar Pradesh, Uttarakhand and Bihar.
An official press communiqué said Thursday that Vishnugad Pipalkoti HEP would be implemented at an estimated cost of Rs.249.15 billion. This includes interest incurred during construction and financial charges of over Rs.3.66 billion.
The statement said equity would be released pari-passu – an indication that one series of equity will have the same rights and privileges as another series of equity – with the debt.
“Fifty percent of equity for the project shall be contributed by the THDC out of its internal resources and the balance 50 percent shall be shared between [the] governments of India and Uttar Pradesh in the ratio of 3:1,” said an official spokesperson.
“The project will contribute towards capacity addition and will help in reducing the peaking and energy shortage in the northern region and will also improve the hydro thermal mix in the country,” the spokesperson added.