State-owned SJVN said that the Himachal Pradesh State Cooperative Bank shall provide a loan of almost Rs 500 crore to set up a 66 MW hydroelectric project located in Himachal Pradesh.
SJVN in a regulatory filing said that they have achieved financial closure by signing a loan agreement of approximately Rs 494 crore with the Himachal Pradesh State Cooperative Bank to develop 66 MW Dhaulasidh REP (DSHEP) falling under the Hamirpur and Kangra District of Himachal Pradesh.
Additionally, it said the total cost of this project is Rs 688 crore and it is yet to be financed via a debt-equity ratio of 80:20.
Financial closure is a project development stage where all the conditions of a financing agreement are completed before the initial availability of funds provided by the financiers.
The project commenced construction activities in May 2021 and will generate around 304 million units upon completion at a tariff of Rs 4.46 kilowatt per hour.