The Government of Germany, through its financing agency KfW, agreed to finance around €201.5m for Himachal Pradesh Power Corporation’s (HPPCL) 191 MW Thana Plaun hydro electric power project under 'Himalaya Hydropower Program'.
The amount will constitute €200m of reduced interest loan and €1.5m of grant to execute further technical studies of the project, according to the Times of India.
As part of this move, KfW will also provide the technical, environmental and social evaluation of the project that is expected to be completed by June 2014.
Construction of the project is likely to begin by January 2015 and complete by 2019.
HPPCL managing director DK Sharma sought financial aid from the German government during the Indo-German Annual Negotiations 2013 under Indo-German Bilateral Development Cooperation Program held during July 2013 in New Delhi.
HPPCL initially proposed to build the Thana Plaun plant as a run-of-the-river project with 141 MW capacity and later revised the plan by converting it to a dam-toe power house layout with 191 MW capacity.