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Asian bank in investment to build 100MW hydropower plant in India

ADB to invest $30m to support construction of Tidong run-of-river hydropower project in India’s Himachal Pradesh as part of 530GWh renewable energy plan

The hydropower plant is part of a renewable energy project to reduce carbon dioxide emission by 400,000 tonnes annually in India from 2017 onwards

The Asian Development Bank (ADB) is investing USD 30m to support the construction of a 100MW hydropower plant in India. ADB is investing in NSL Renewable Power Private (NRPPL), a leading renewable energy company in India, to fund the development of the 100MW Tidong run-of-river hydropower project in India's Himachal Pradesh.

The hydropower plant will be part of a renewable energy plan to annually generate 530GWh and reduce carbon dioxide emission by 400,000 tonnes annually from 2017 onwards in the BRIC country.

ADB's investment aims to help NRPPL reach its target of 1,000MW of operational renewable energy assets by 2017. As well as the Tidong run-of-river hydropower project, NRPPL will use the investment proceeds to finance the 75MW Chilarewadi wind project in Maharashtra.

This is ADB's first equity investment in a private sector renewable power generation company in India and ADB's first private sector assistance to India's hydropower sector. The investment agreement between ADB and NRPPL was signed in the run up to ADB's 46th Annual Meeting in Delhi.

Lakshmi Venkatachalam, ADB's vice president for private Sector and co-financing operations, said: "India will increasingly need renewable energy to drive its development, and the private sector will play a central role in developing the renewable energy sector to help the country achieve green growth."

NRPPL is one of India's leading renewable power companies. The company belongs to the NSL group, which includes Nuziveedu Seeds Limited, the largest seed company in India. As of end 2012, NRPPL had 185MW of operational projects (including hydro, wind, biomass and solar power projects), with an additional 336MW of renewable power under construction or in advanced development.

The news from ADB marks another step forward in the development of India's hydropower sector this year. In March 2013, Indian clean energy projects developer Greenko announced it will add six new run-of-river hydropower plants totalling 425MW to its active development pipeline in the BRIC country, including in Himachal Pradesh.