The World Bank has firmed up plans to once again assist in hydel power generation projects in the country after staying away from them for almost five years. This time, the bank will finance only run of the river projects and not ones involving construction of a dam.
The bank is currently in the process of firming up investment plans of $1.3 billion (Rs 5,800 crore) for five projects, being taken up by three public sector units. A run of the river project does not involve construction of a dam.
It does not cause a significant change in river flow, limiting side effects. A few years ago, the bank had pulled out of a project to build dams across the Narmada after a reassessment.
The World Bank will be helping Satluj Jal Vidyut Nigam Ltd set up a 430-mega watt (Mw) hydel power generation plant on Satluj river at Rampur in Himachal Pradesh.
Out of the total project cost of $525 million, the bank will contribute $400 million. The body is also in talks with the PSU for setting up another hydel power project of 400-500 Mw capacity involving a project cost of $525 million.
The World Bank will also be helping the Uttaranchal Jal Vidyut Nigam Ltd in setting up two projects on the Alaknanda river in Uttaranchal. They may be of 130-160 Mw each and will involve a total investment of $300 million.
The PSU will contribute $100 million for the projects construction for which will start by end 2007. They are expected to be completed by 2010. The bank expects to assist in another hydel power generation project with a capacity of 300-400 Mw and involving an investment of $300 million.
It will see association with another government PSU involved in hydel power generation. The banking body plans to be associated with hydel power generation projects with a combined capacity of around 1500 Mw by 2012.
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