India’s Cabinet Committee on Economic Affairs (CCEA) has approved the setting up of the 520MW Parbati hydroelectric project stage III in Himachal Pradesh by National Hydroelectric Power Corporation India (NHPC).

The cost is an estimated US$500M including interest during construction and foreign component of approximately US$450M at May 2005 price level, with a debt equity contribution of US$22.2M to be made by NHPC from its internal resources. The cost is inclusive of the amount of US$4.4M already approved for development of stage II activities of the project.

The 4 X 130MW Parbati hydroelectric project stage III is a run of river scheme on river Sainj in Kullu district of Himachal Pradesh. The project will be completed over a period of five years, and its purpose is to help in reduce the power shortage in the area’s northern region.

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