On 24 January 2006, National Hydroelectric Power Corporation (NHPC), signed a Rs.628.92 crore contract agreement with Jager-Gammon for the execution of civil works for the 520 MW Parbati Stage-III Project in the Kullu district of Himachal Pradesh.

The project entails a investment of Rs.2304.56 crores, with debt-equity ratio of 70:30. The equity is being given by the centre in the form of budgetary support and the balance amount is arranged by NHPC from the market, financial insititutions and internal resources.

The project envisages construction of a 43 metre high rock fill dam with a spillway and a 7.25 meter diameter head race tunnel of 7.875 km length. The project is scheduled to be completed in five years and will generate 1963.29 million units of power annually in a 90 per cent dependable year with machine availability of 95 per cent