DCM begins power play with HP deal

Will set up the Chhatru project

NEW DELHI: The DCM Shriram group has forayed into the power sector through DCM Shriram Infrastructure Ltd, bagging its maiden project in Himachal Pradesh.

DCM Shriram Infrastructure Ltd, a subsidiary of DCM Shriram Consolidated Ltd, has won a Rs 700-crore contract to execute the 108 MW Chhatru Hydro-Electric Project in the tribal district of Lahaul Spiti. The project will be on Chandra river, a tributary of the Chenab.

Chhatru will be the first hydroelectric project to be executed through the public-private partnership route in the country.

The company will work on a build own operate and transfer (BOOT) basis — it will develop, finance, construct, commission and operate the power plant for a concession period of 40 years.

The project involves design and construction of a 19-metre high barrage, creating a live storage of 87.5 hect-m water, which can also be used to run it as a peaking power plant.

The group’s recent involvement with the 65 MW Dagushan hydro power project in Northwest China has helped in gaining experience of working in an difficult terrains like Chhatru.

Ajay Shriram, chairman and senior managing director, DSCL, said, “DSCL has the technical and financial capability for the execution of this project and is committed to its timely development with the help of the government. We look forward to expanding our power business by identifying and developing other hydroelectric projects, including cascade projects.”