After facing opposition over executing projects in public-private partnership, Uttarakhand Jal Vidyut Nigam Limited (UJVNL) has now decided to modernise and renovate its old hydel projects by taking soft loans from Germany and the Centre.

UJVNL, a state government enterprise, would receive a soft loan of 100 million euros from KFW, a German financial institution, for modernising and renovating six hydel projects in the Garhwal region. An additional grant of 3.3 million euros from KFW would be for preparing the detailed project report of these projects.

Similarly, Rural Electrification Corporation Limited, a public sector unit, has agreed to provide a loan of Rs 50 crore for modernising Mohamadpur (9.3 Mw) and Pathri (20.4 Mw) hydel projects.

In July last year, the government, in a major policy decision, decided to renovate all those hydel projects, which have crossed 35 years under the PPP mode. The cabinet cleared nearly 24 hydel projects in this category, to be given on a 30 years lease. The total capacity of all these projects is 500 Mw.

However, UJVNL unions and some politicians opposed the move due to which the government put the PPP decision on hold.

Official sources though believe the PPP decision was the best option since the state desperately needs more power. Last year, the government had to suspend the construction of two of its major hydel projects – 480 Mw Pala Maneri and 400 Mw Bharion Ghati — following opposition from environmentalist GD Agrawal, a move which also dampens the government’s bid to generate more power.

UJVNL has also signed an agreement with Lamyar International, a German company, for preparing the DPR and technical feasibilities of the six hydel projects for which KFW is giving loan. The six projects are 240 Mw Chibro, 120 Mw Khodri, 51 Mw Dhalipur, 33.75 Mw Dhakrani, 30 Mw Kulhal and 90 Mw Tiloth.

New Ipad Application :Business Standard's all new IPad App Click here to download for free Other Stories      - Markets end flat - Turbulence ahead for airlines despite oil price drop - Weak rupee may bring cheer to NRIs, expats - LIC buys PSU stocks, sells pvt sector blue-chips in Q4 - Banks may lower deposit rates as inflation eases: Report

Tags : Uttarakhand Jal Vidyut Nigam Limited (UJVNL) has now decided to modernise and renovate | UJVNL chairman Yogendra Prasad   Read Business news in  Advertisements -  Journey on, We are by Your Side. Click here to know more -  Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol. -  The Best Seller is Also the No. 1 in Mileage. Click here -  Watch The Film Here. Click here to know more.. -  Leader in Passenger Car & Automobile Tyres. Click here -  1 billion in saving for Unilever without any tangles. -  Learn How One City is Running on FOOD SCRAPS. -  One Partnership Endless Possibilities. Click here to know more -  Helping doctors detect diseases earlier, saving costs & extending lives. -  36 Lakhs can get you a pool of Luxuries. Click here -  Which is the best plan for your daughter -  Check out the TRUE COLOURS of your Stocks, Now for FREE! -  One of the leading business schools in the world.Know More