Karcham Wangtoo Hydroelectric Project

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Jaypee Karcham Hydro Corporation Limited (JKHCL) undertook the development of 1000 MW Karcham Wangtoo hydro electric project (KWHEP) on Satluj river, in Kinnaur district of Himachal Pradesh State, on build-own-operate (BOO) basis. The project consisted of 4 generator units, each producing 250 MW each. This hydroelectric plant was designed to be a ‘run of the river” scheme and involved the construction of a concrete gravity dam. Though the implementation agreement (to develop KWHEP) between JKHCL and Himachal Pradesh State Government was signed in November 1999, the project was significantly delayed due to legal hurdles that affected the construction work on the main tunnel, dam and other sites. In March 2006, JKHCL signed a power purchase agreement (PPA) with PTC India Limited, a majority privately-owned power trading company, committing to sell over 70% (704 MW) of its power for 35 years. JKHCL, a special purpose company, was a wholly owned subsidiary of India’s Jaiprakash Associates Limited. Information on how the contract was originally awarded to JKHCL was not available from public sources. The total cost of KWHEP was estimated at US$ 1260 million (Rs 57,100 million). The project reached financial closure in 2006. Construction works began in 2006 and the project was expected to be commissioned 2011. The project was commisioned in August 2011.