In collaboration with its partner in the deal, LNJ Bhilwara Group of India, the Norwegian financier is to provide funding for the operation of the 86MW Malana hydro station as well as the development of the 192MW Allain Duhangan facility, both of which are located in Himachal Pradesh.
Construction of the Allain Duhangan project is to begin early next year and is to be carried out in accordance with the environmental and social safeguard policies determined by the International Finance Corporation, which is also to provide finance for the scheme.
According to SN Power, Allain Duhangan will only require a small intake reservoir and will not displace any local populations. Once it is commissioned in 2008-2009, it is hoped that the extra generation capacity provided will help to reduce shortfalls in power supply in the region, which are currently estimated at around 1500MW.
The Malana facility meanwhile has been in operation since 2001, and generates some 350GWh per year.
The joint venture is expected to be finalised in 2005, with LNJ Bhilwara taking a 51% stake in the deal and SN Power the remaining 49%.
