Livemint reported that the Asian Development Bank had approved an USD 800 million loan to help the Indian state of Himachal Pradesh expand hydro power generation with a series of projects in the western Himalayas.

The Manila based bank in a statement said that with the help of the 8 year loan package, Himachal Pradesh plans to harness 5 major rivers to build hydropower plants that will provide a combined capacity of 808 MW.

The ADB and the state government have identified two projects ready for financing through the first loan tranche of USD 150 million, building the 111 MW Sawra Kuddu project on the Pabber river and civil works for the 65 MW Kashang I project.

Mr Andrew Jeffries ADB energy economist said that "Himachal Pradesh's focus on hydropower development will provide jobs to state residents and will further the state's and the country's goal of maximizing this clean, indigenous resource to help meet its energy needs."

The bank said that the mountainous area's power generation potential is 20,415 MW about 25% of India's total hydropower potential out of which only 6,150 MW has been developed. India is critically short of energy to fuel its economy and imports more than 70% of its energy needs.