The Government of India has requested the World Bank’s assistance to finance the proposed Vishnugad Pipalkoti Hydro Electric Project to be developed by the Tehri Hydro Development Corporation (THDC) on the Alaknanda river in Uttarakhand. The THDC is a joint venture between the Government of India and the Government of Uttar Pradesh.
The Vishnugad Pipalkoti Project has been designed as a 444 Megawatt, run-of-river hydropower generation scheme which, when completed, will generate approximately 1,800 Gigawatt-hours, (or million kilowatt-hours) of energy in a typical dependable year, representing a valuable addition of peaking power to India’s Northern grid, which faces severe power shortages at peak consumption times.
In order to maintain the water flow needed for power generation, the Project will build a 65-meter diversion dam to create a small reservoir in the Alaknanda gorge. This reservoir will store about 3.63 million cubic meters, the equivalent of about 4.9 hours of average flow of the river waters. A 13.4-kilometer head race tunnel will carry the water to an underground powerhouse which will generate the power.
A 3-km tail race tunnel will return all the diverted water back to the Alaknanda, approximately 18 km downstream from where the water was diverted. The impact of the Project on downstream water quality is expected to be negligible. A flow of water necessary to sustain the aquatic health of the river in the 18 km stretch shall be maintained at all times.
The Project is in the early stages of preparation* and a series of technical, environmental and social studies and impact analyses are currently underway to assess the impact of the Project on the local population as well as the local environment. These studies, complemented by consultations with affected communities, will form the basis of the Environmental Management Plan and the Resettlement and Rehabilitation Policy that will seek to mitigate the negative impacts of the Project. The studies, which shall be conducted over the course of 2007, have been designed to reflect the lessons learned from the extensive scrutiny of hydro projects that have been implemented in the past, including those financed by the World Bank in India.
THDC has opened a Public Information Center (PIC) at the project site in Haat village to allow local people easier access to information relating to the Vishnugad Pipalkoti Project. The PIC will also stock copies of all relevant studies and documents.
The power generated by the Vishnugad Pipalkoti hydro project will feed into the northern Indian energy grid, directly benefiting consumers in the states of north India and improving the availability of power at reasonable cost. Amongst other supplies being developed, this power can also be used to provide service for those who currently have limited or no access to electricity. The sale of power from the Project will provide the state of Uttarakhand with a royalty of 12 percent of the power generated, which is estimated to be around Rs. 40 crorre (approximately US$ 10 million at current conversion rates) each year at existing tariffs.
Hydropower being one of the cleanest energy generation options available, the Vishnugad Pipalkoti Project will also help reduce India’s emission burden. If a coal or oil-fired plant of the same capacity were to be built instead, that thermal plant would release greenhouse gases in the range of 12,000 tons of sulphur oxide, 6,000 tons of nitrogen oxide, and 2 million tons of carbon dioxide into the atmosphere each year.
*World Bank financing for the Project will depend on the Project meeting certain critical requirements regarding safeguarding the social and environmental interests of local communities affected by the hydropower scheme. Assuming these requirements are met, the Project will be financed by an investment loan from the World Bank, tentatively in the amount of US$ 400-420 million, representing a substantial portion of Project investment costs and funds for technical assistance aimed at helping THDC strengthen its standards for the design, development, construction and operation of hydropower plants.
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