French AFD approves 80 mn euro loan for hydro projects in HP

French development agency AFD will assist India with an 80 million euro loan facility for developing two hydro-electric projects in Himachal Pradesh.

An agreement was signed between the Department of Economic Affairs and AFD in India for the credit facility today.

A programme is to expand Himachal Pradesh's clean energy capacities and meet the strong growth anticipated in electricity demand.

It will finance two run-of-river hydroelectric plants, namely Deothal Chanju HEP (30 MW) and Chanju III HEP (48 MW) situated in the Chanju river basin.

"The project aims to provide a capacity of 78MW of renewable energy, which will generate 280 GWh of electricity per year and reduce 276 000 tCO2eq in annual greenhouse gas emissions," AFD said in a statement.

The construction of these plants will not involve any displacement or resettlement of population, thus reducing the potential negative social impacts of the project.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)