It is reported that Rajasthan government has signed a power purchase agreement with the Tehri Hydro Development Corporation Limited for purchase of energy from 400 MW Koteshwar Hydro Electric Project and Vishnugad Pipal Koti Hydro Electric Project of 444 MW.

The power purchase agreement was signed by the CMDs of Jaipur Vidyut Vitran Nigam, Ajmer Vidyut Vitran Nigam and Jodhpur Vidyut Vitran Nigam.

The Koteshwar project is under commission and it is expected to start generation from June 2010. The cost of the project is being shared by the centre and government of Uttar Pradesh in the ratio of 75:25 in equity for power component.

Rajasthan shall be allocated around 8% power from these projects. The energy generated by these 2 projects is expected to add to the energy pool of the northern region and further stabilize the northern grid.