Mumbai, December 21 2008: SATLUJ JAL Vidyut Nigam Ltd (SJVNL), the state-owned hydropower company, may finally make inroads into the most promising region for hydropower � the north-east � through a project in Manipur.

The company, which is based in Himachal Pradesh, is in talks with the government of Manipur for a majority stake in a proposed 1,500 mw hydroelectric power project in the state.

H K Sharma, chairman and managing director, Satluj Jal, said the Manipur government has shown interest in partnering with the company and a final nod is awaited.

Certain issues over the funding of the project also have to be resolved.

The cost of the project has worked out to about Rs 8,000 crore, 51% of which will be borne by the Manipur government.

A state-level body, National Identity Protection Committee (Nipco), may own 5% in the project and the rest of the stake is likely to come to Satluj Jal.

Due to the high cost of the project, some concerns have been raised over its viability, but the power ministry and the Manipur government are both in favour of going ahead with it.

So the project is likely to take off soon, said Sharma.

"Though we are comfortable with 45% equity in the project and have the cash to fund it, the Manipur government is seeking aid to part fund its stake," said Sharma.

The power generated at the plant will be sold at between Rs 3.70 and Rs 3.80.Sharma said the modalities of the project have already been worked out, including environmental clearances and preparation of a detailed project report (DPR) .

If the project takes off, it will be Satluj Jal's debut in the north-eastern region.

The company expanded its footprints outside its home state Himachal Pradesh and became a national-level hydropower company in the last one year.

Apart from Himachal Pradesh, Satluj Jal has projects in different stages of execution in Uttarakhand with a total installed capacity of 356 megawatt (mw).

The company has a 402 mw project coming up in Nepal.

In Himachal Pradesh, Satluj Jal's current installed capacity is 1,500 mw at the Nathpa-Jhakri hydroelectric project, which is the country's largest underground hydroelectric power project.

It was commissioned during the Tenth Five-Year Plan.

"We are also working on two projects in Bhutan with a total capacity of 1,300 mw," said Sharma.

The DPRs of these projects are being prepared and by 2010, construction is likely to start soon.

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