International Finance Corporation, the private sector arm of the World Bank, has committed around $49 million (Rs.210 crore) of equity and debt funding to the 192 MW AD Hydro Power Ltd.

IFC's financing consists of a loan of up to $42 million and equity of up to $7 million for a 10 per cent stake in the project. The loan will have a maturity of 15 years and will be denominated in rupee terms.

The project involves the construction, operation, and maintenance of the 192 MW run-of-the-river hydroelectric power project in the Kullu district of Himachal Pradesh, and the construction of a 185 km, 220 kV transmission line that will extend to the interconnection point on the regional grid. The power plant will harness waters of the the Allain and Duhangan rivers and combine the flows through two underground headrace tunnels to feed a single powerhouse near Prini village. The estimated construction period is about four years and the total cost is about $195 million (Rs.840 crore).

The project sponsor is Malana Power Corporation Ltd, which is owned 51 per cent by the LNJ Bhilwara group and 49 per cent by Statkraft Norfund Power Invest AS of Norway (SN Power).