Drinidhar Power Project

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In June 2005, Vamshi Industrial Power Limited (VIPL) signed an implementation agreement with the government of Himachal Pradhesh (GoHP) that allowed VIPL to build, own, operate and maintain Drinidhar hydroelectric power project on Beas river, in Kangra District of Himachal Pradesh State, for a period of 40 years from the date of commissioning. The project consisted of 2 generator units, each producing 2.5 MW each, for a total capacity of 5MW. This project was implemented under the Small Hydro Project Self Identified Schemes policy of GoHP. The power generated from the project was to be supplied to the Himachal Pradesh State Electricity Board (HPSEB) under a 35 year a power purchase agreement. VIPL, a special purpose company, was a wholly owned subsidiary of India’s Lanco Group. The total cost of the project was estimated at US$ 6.35 million. The project reached financial closure in March 2006. Construction work began in 2006 and the project was scheduled for commissioning in April 2008.