Himachal Pradesh State Electricity Board started working on the Ghanvi river, a tributary of the Sutlej, in 2004 and the proposed cost was Rs 49 crore. It was to be completed by March 2007 but has taken almost eight more years, which shot up the construction cost to Rs 173 crore.
The project was built by the Himachal Pradesh State Electricity Board while the dam and intake reservoir was done by the Hydro Construction Power Company. Inaugurating the project state Chief Minister Virbhadra Singh said the project will generate 56 million units of power annually, bringing a revenue of Rs 12 crore.
Officials said electricity produced will be routed through the northern grid.
Himachal Pradesh State Electricity Board is known for its inefficiency, it is also the most over-staffed power board in the country.
The project has accumulated losses of some Rs 1,300 crore.
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