Velcan Energy has secured the techno-economic clearance from the Indian Central Electricity Authority for the 240MW Heo hydro electric power project to be developed on Yarjep River in Arunachal Pradesh.
The approval validates and sets the technical characteristics, costs estimates and tariffs of the $250m project.
The Heo facility is part of three projects on the river that Velcan has been developing since 2007. The combined capacity of the developments is 571MW.
After completion, the Heo project will generate 1,000 million units of energy per year.
The clearance enables Velcan to start discussions for a power purchase agreement with potential clients and seek financing from several interested parties and banks.
Velcan Energy co-CEOs Jean-Luc Rivoire and Antoine Decitre said: "This approval is an important milestone for Velcan in India.
"Velcan’s Indian projects are set to benefit from the growth of the national economy and the planned improvement of the physical infrastructure. Velcan Energy is proud to contribute to the modernization of a region with much potential."
Velcan is engaged in development and operation of hydro power concessions in emerging markets. The company is currently targeting markets like India, Brazil, Laos and Indonesia.