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The Cabinet Committee on Economic Affairs (CCEA) today approved the Revised Cost Estimates of the Tehri Hydro-electric project, stage-I (4x250 MW) along with essential works of Tehri Pump Storage Plant amounting to Rs.6621.32 crore (at March ’03 PL) including Interest During Construction (IDC) and Financing Charges of Rs.560 crore. The loan/IDC of Rs.563.19 crore released by the Government would be converted into equity with effect from the initial period of drawal of loan i.e. 1998-99 to maintain the debt equity ratio of 1:1 as recommended by Public Investment Board.
The loan for power component of the Project amounting to Rs.2720.18 crore is to be partly raised by Tehri Hydro Development Corporation (THDC) from the external commercial borrowings (Rs.751.80 crore) for purchase of equipment under international competitive bidding and partly from the Power Finance Corporation (Rs.1206 crore). Once the conversion is done, no budgetary support will be provided by the Government of India either in the form of equity or loan and, therefore, the balance amount would be arranged by THDC from financial institutions/banks.
This would enable completion of Tehri Stage-I Project, which would help in reducing the shortage of power in the northern region and would also improve the hydro thermal mix in the country.
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