Germany has committed a soft loan of Rs.1,630 crore loan to state-run Himachal Pradesh Power Corporation Limited (HPPCL) for its upcoming 191 MW Thana Plaun hydro electric power project located near Mandi town in the state.

An agreement to this regard was signed recently in New Delhi. Out of this, Rs.1,618 crore will be by way of reduced interest loan and the balance Rs. 12 crore will be by way of grant for carrying out further technical studies of the project.

KfW, a development financing agency of government of Germany, would commence technical, environmental and social evaluation of the project. Official of HPPCL expected to complete the evaluation by June 2014 and expecting to obtain all regulatory approvals by September 2014 and to sign the loan agreement with KfW in the same month. The project is expected to be completed by 2019.