The World Bank (WB) sigÂned a $648 million loan agreement with THDC India to buÂild the Vishnugad Pipalkoti hydro electric project on the AlaknÂanda river in Uttarakhand. The project is expected to generate an estimated 1,665 million kWh of electricity each year. The 444 MW Vishnugad Pipalkoti project will provide a valuable addition of peaking power to India's Northern Grid, which faces severe power shortages at high-consumption times. The electricity generated from the project will be supplied to the states of Punjab, Haryana, Rajasthan, Uttar Pradesh, Himachal Pradesh, Uttarakhand, Chandigarh, Delhi and Jammu & Kashmir. The project will help reduce India's greenhouse gas emissions by 1.6 million tonne each year, compared to a thermal plant of the same capacity. The project will also provide Uttarakhand with a royalty of 12 per cent of the power generated.