Vamshi Hydro Power Project

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In November 2005, Vamshi Hydro Energies Private Limited (VHEPL) signed an implementation agreement with the government of Himachal Pradhesh (GoHP) that allowed VHEPL to build, own, operate and maintain two 5 MW hydroelectric power plants, Baner-III and IKU-II, in Kangra district of Himachal Pradesh State for a period of 40 years from the date of commissioning. Both Baner-III and IKU-II were designed to be “run of the river” schemes across Beas river. This project was implemented under the Small Hydro Project Self Identified Schemes policy of GoHP. The power generated from this project was to be supplied to the Himachal Pradesh State Electricity Board (HPSEB) under a 35 year a power purchase agreement. VHEPL, a special purpose company, was a subsidiary of India’s Lanco Group. The total cost of the project was estimated at US$ 12.27 million. The project reached financial closure in March 2006. Construction work began in 2006 and the project was scheduled for commissioning in April 2008.