India-based chemicals producer Nagarjuna Agrichem will invest INR1bn ($18.8m) for the development of a 300MW hydropower project in the country.

The company, part of the Nagarjuna Group, announced the securing of approval from its board to pursue the investment which is equivalent to 20% of the total project costs.

The proposed project will be built on the Tolung Chu River in North Sikkim district of Sikkim.

Himagiri Hydro Energy, another subsidiary of Nagarjuna Group, is expected to execute the construction of the project.

The project is currently in the very early stages of development, said the company in a statement filed with the Bombay Stock Exchange.

Nagarjuna Group is primarily involved in the agrochemical and irrigation systems markets with interests in renewable energy.