The Hindu Business Line : Bhilwara group in pact with Norway co for hydro project

Mr Ravi Jhunjhunwala, Chairman, LNJ Bhilwara Group, with Mr Qistein Andresen, CEO, Statkraft Norfund Power Invest AS, at a press conference in the Capital on Tuesday. - Kamal Narang

New Delhi , Oct. 19

THE LNJ Bhilwara Group on Tuesday announced a joint venture agreement with Norway-based hydro power major Statkraft Norfund (SN) Power Invest AS for executing hydroelectric projects in India.

As part of the agreement, the LNJ Bhilwara Group will offload 49 per cent equity in Malana Power Company to SN Power for Rs 207 crore.

"The group already has a 86-MW hydroelectric plant at Malana in Himachal Pradesh, and the joint venture will take up the 192-MW Allain Duhangan project in the State," the LNJ Bhilwara Group Chairman, Mr Ravi Jhunjhunwala, said at a new conference here.

Malana Power Company will have 90 per cent equity in Allain Duhangan Hydro Power Ltd, amounting to Rs 282 crore. The Rs 900-crore project will be implemented with a debt-equity ratio of 65:35.

Washington-based International Finance Corporation (IFC) will provide the remaining 10 per cent equity, he said, adding that IFC has also sanctioned a loan of Rs 184 crore.

According to Mr Jhunjhunwala, the project will begin in 2005 and is likely to be commissioned in 2008. The project will generate power at a cost of Rs 2.75 per unit during the first year of operation with the tariff reducing over time.

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