A consortium comprising VA Tech Hydro, Austria, VA Tech Hydro India and VA Tech Escher Wyss Flovel has received a contract from Karnataka Power Corporation to set up the underground power plant at Varahi Stage II power house in Hosangadi Udupi District of Karnataka, India.

The contract is on a turnkey basis including engineering, procurement and construction, as well as financing with an appropriate value of 30M Euro (US$39.6M). The scope includes installation of two additional units of 115MW Pelton turbine and generator sets including the complete balance of plant equipment for the project.

Apart from renovation and modernisation of existing facilities, the scope also envisages remote operation of the 2 x 4.5MW Mani dam power house from Varahi power house. Mani dam is located 20km away from Varahi.

The project is scheduled for completion in 28 months.