The Asian Development Bank has announced that it has sanctioned 800-million-dollar loan to facilitate the Indian state of Himachal Pradesh to extend hydropower generation with a series of projects in the western Himalayas.

Through the eight-year loan package, Himachal Pradesh proposes to harness five major rivers to set up hydropower plants that will offer a combined capacity of 808 megawatts.

According to the sources, the Asian Development Bank and the state government have identified two projects geared up for financing through the intial loan tranche of 150 million dollars – setting up 111MW Sawra Kuddu project on the Pabber river, and civil works for the 65MW Kashang I project.

According to the bank officials, the mountainous arena’s power generation potential is 20,415MW --about 25% of cuntry’s total hydropower potential -- out of which only 6,150MW has been constructed.