Allain Duhangan Hydro Electric Project

Active

The Allain Duhangan hydro electric project was a 192 MW run-of-river hydroelectric power plant, located on the Allain and Duhangan tributaries of the Beas River near Manali, Kullu District in the state of Himachal Pradesh. The project was being developed by Malana Power Company Limited (MPCL) which is owned by the LNJ Bhilwara (LNJ) Group. MPCL had established Allain Duhangan Hydro Power Limited (AD Hydro) for implementing the project. MPCL was a Joint Venture between the LNJ Bhilwara group, and SN Power Invest, a Norwegian firm. The Norwegian firm was an equal venture between Norway’s electricity company Statkraft and the state-funded risk capital investor Norfund. LNJ Bhilwara holds 51% equity in MPCL while SN Power Invest holds 49% equity in MPCL. MPCL in turn held 90% of the equity in AD Hydro and International Finance Corporation (IFC) held 10%. AD Hydro proposed to sell power through a combination of long term PPAs with states in the northern region of India and short term PPAs with Power Trading Corporation, a public-private partnership. The details of the final set of PPAs signed were not available at the time of collection of this information. The project was estimated to cost USD 230.58 million. The project was been funded through 65:35 debt equity ratio. IFC had committed around USD 49 million of equity and debt to the project in April 2005, with the debt component being approximately USD 42 million the equity being approximately USD 7 million. The debt funded by IFC had a maturity of 15 years. The rest of the funding had been tied up from Indian Banks and the project achieved financial closure in November 2006. The project was expected to be commissioned in June 2009. Commissioning was realized in April 2010.