A financial agreement to this effect has been inked between the bank and officials of the Indian government.
Total development costs of the project are pegged at $750m with German development bank KfW and the state of Himachal Pradesh to provide €150m and $235m respectively.
Commenting on the funding Department of Economic Affairs Joint Secretary Prabodh Saxena remarked that the project will provide enough power to meet the state’s demand as well as exporting power.
ADB’s India Resident Mission deputy country director Narhari Rao added, "Himachal Pradesh’s focus on hydropower development will provide jobs to residents and will further the state’s and the country’s goal of maximizing this clean, indigenous energy source to help meet its energy needs.
The loan has a 25-year term and is the fourth part of a multi-phase $800m financial facility between the bank and the state’s clean energy investment program.
