WB extends $648M loan for Alaknanda River hydroelectric project

The World Bank will provide a US$ 648 million loan to THDC India for constructing the Vishnugad Pipalkoti
Hydroelectric Plant on the Alaknanda river.

THDC will build a 65-meter diversion dam near Helang village in Chamoli district of Uttarakhand to create a small reservoir in theAlaknanda River.

"Hydropower is one of cleanest means of electricity generation and the Vishnugad Pipalkoti Hydro Electric Project is a priority project that will help relieve power shortages in India," Joint Secretary in the Department of Economic Affairs Venu Rajamony said.

This hydro power plant on the Alaknanda river is expected to generate 1,665 million units of electricity annually.

"The project will help meet the sharp daily spurts in demand from households and industries at peak electricity consumption time. This will represent a valuable addition of peaking power to India's Northern Grid, which faces severe power shortages at high-consumption times," the World Bank said in a statement.

The 444 MW Vishnugad Pipalkoti Project would also help reduce India's greenhouse gas emissions by 1.6 million tonnes each year, compared to a thermal plant of the same capacity, the multilateral lender noted.