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ADB grants $315 Million Loan for Hydropower Plant in Himachal Pradesh

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Hydropower-Plant

The Asian Development Bank (ADB) and Government of India officials have signed a $315 million ADB loan to help fund the 450-megawatt Shongtong Karcham Hydroelectric Project in the district of Kinnaur, Himachal Pradesh.

The loan is the fourth tranche of an $800 million multitranche financing facility called the Himachal Pradesh Clean Energy Development Investment Program aimed at expanding the supply of power in the hill state. Better electricity supply will help businesses, contributing to job creation and poverty reduction.

Taking part in the signing ceremony on behalf of the Government of India was Prabodh Saxena, Joint Secretary (Multilateral Institutions), Department of Economic Affairs, Ministry of Finance, and on behalf of ADB, Narhari Rao, Deputy Country Director of ADB’s India Resident Mission.

“Himachal Pradesh’s focus on hydropower development will provide jobs to residents and will further the state’s and the country’s goal of maximizing this clean, indigenous energy source to help meet its energy needs,” said Mr Rao.

The program, approved by ADB’s Board of Directors in October 2008, is helping finance four run-of-river hydropower projects totaling 856 megawatts. Himachal Pradesh Power Corporation Ltd. (HPPCL), the state government-owned power generation company, is developing the projects.

“This program not only benefits Himachal Pradesh by supplying affordable, reliable power to its residents, but will enable the export of excess power to the rest of the country for the benefit of power deficient states,” said Mr Saxena.

Himachal Pradesh, a small mountainous state with five major rivers, has about a quarter of India’s total potential hydropower resources. Recognizing this potential, the state government has approved a Hydro Power Policy that aims to make Himachal Pradesh the leading state hydropower producer.

The loan has a 25-year term, with a grace period of five years and interest determined in accordance with ADB’s LIBOR-based lending facility. KfW, the German development bank, will provide cofinancing through a separate loan totaling €150 million. The Government of Himachal Pradesh will provide counterpart funds of about $235 million for the $750 million project.

News Release ADB

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Shimla: Retaining Wall Collapses During Four-Lane Construction, Residents Flee Homes to Save Lives

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Landslide in Dhali Shimla

SHIMLA | 3 July 2025 –A major mishap occurred in the Lindi Dhar village of Shimla district during the ongoing four-lane highway construction, raising fresh concerns over safety and construction quality. A retaining wall, constructed as part of the project, collapsed once again—posing a serious threat to nearby homes and destroying hundreds of apple trees.

According to local residents, this is not the first time the wall has caved in. Despite previous incidents, authorities failed to take adequate corrective measures. The latest collapse forced several families to abandon their homes for safety, fearing further landslides and structural damage.

Villagers have accused the National Highways Authority of India (NHAI) and its contractors of negligence. They allege that no proper safety precautions were taken in the construction process, even though the area is known to be vulnerable to landslides.

“This wall had collapsed earlier too, but no permanent solution was provided. Now, we are facing the same threat again. Our lives and properties are at constant risk,” said a local resident.

The landslide also damaged a large number of apple orchards—adding to the losses of local farmers who depend on horticulture for their livelihood.

Residents have demanded immediate intervention from the administration and strict action against those responsible for the substandard construction. They have also urged NHAI to put in place robust safety measures to prevent such incidents in the future.

Local officials have visited the site, and further assessment is awaited.

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Police Complaint Alleges Criminal Negligence in Four-Lane Highway Project Between Parwanoo and Solan

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shimla chandigrah fourlane

Solan | 30 June 2025 – A police complaint has been filed at the Parwanoo Police Station in Solan district, alleging criminal negligence and environmental damage in the construction of the four-lane highway between Parwanoo and Solan. The complaint, submitted by former Deputy Mayor of Shimla Tikender Singh Panwar, accuses the National Highways Authority of India (NHAI) and its executing contractor, G R Infraprojects Limited, of serious lapses that have endangered lives, property, and the natural ecosystem.

According to the complaint, NHAI officials based at the Chakkar office in Shimla, along with planning teams at Rishikesh Sadan, Shanti Kutia, and the executing agency G R Infra, with its corporate office in Sector 18, Gurugram, failed in their duty to ensure minimal damage to the hilly terrain. It is alleged that the project was undertaken without proper consultation with the Geological Department, resulting in a project report that is “completely erroneous.”

Panwar contends that the design and method of slope cutting are fundamentally flawed, driven by ill-conceived ideas and profit motives.

“Instead of cutting the hills at a slope, the excavation has been done vertically,” the complaint states, warning that this approach poses a permanent threat to residents living near the construction site.

The complaint further highlights that since the beginning of the construction, there have been recurring losses of life and property, which the complainant attributes directly to unsafe and irresponsible construction practices.

Significantly, the complaint raises concerns about possible collusion between NHAI and GR Infra, and urges law enforcement to determine whether the negligence was circumstantial or the result of deliberate wrongdoing.

Panwar has demanded that both NHAI and G R Infraprojects Limited be held criminally liable and subjected to legal proceedings under relevant provisions.

As of now, neither NHAI nor G R Infra has issued an official response. 

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Himachal Bans Small PET Bottle, Rs 5,000 Fine on Littering of Single-Use Plastics, Compostable Bags

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PET Bottles Ban in Himachal Pradesh

Shimla, May 27, 2025 – Small PET bottles (up to 500 ml) are littering Himachal Pradesh’s hills, forests, and water bodies, threatening its fragile ecosystem.

Ban on Small PET Bottles

Under the HP Non-Biodegradable Garbage (Control) Act, 1995, the state has banned these bottles in all government-organized indoor meetings, conferences, and events, effective June 1, 2025.

Impact on Hotels

The ban extends to HPTDC and private hotels, which must switch to glass bottles or steel water dispensers. A grace period allows clearing existing stocks to avoid financial losses.

Fines for Littering

A Rs 5,000 fine targets littering of single-use plastics, including compostable bags, by individuals, hotels, restaurants, and other institutions.

Mandatory Car Bins

From April 29, 2025, all taxis and public transport vehicles, including HRTC buses, must install ‘car bins’ for waste collection.

Enforcement Measures

Regional Transport Officers and Motor Vehicle Inspectors will verify bins during vehicle registration. Non-compliance incurs a Rs 10,000 fine, with Rs 1,500 for littering biodegradable waste.

Awareness Campaigns

Government bodies will conduct awareness campaigns to discourage small PET bottle use and promote sustainable practices.

Challenges

Himachal’s ban on small PET bottles and vehicle littering targets plastic pollution but faces challenges. Past bans faltered due to weak enforcement, especially in rural and tourist areas.

Small businesses may struggle with costly alternatives like glass or steel containers. Tourists, a major litter source, need better awareness. The car bin mandate requires rigorous monitoring to ensure compliance. Without robust recycling systems and public cooperation, the ban risks limited impact. Subsidizing eco-friendly options and strengthening enforcement are critical to protect Himachal’s ecosystem effectively.

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