State-owned SJVN on Monday said the Himachal Pradesh State Co-Operative Bank will provide a loan of nearly Rs 500 crore for setting up a 66 MW hydro electric project in Himachal Pradesh.

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In a regulatory filing, SJVN said it "has achieved financial closure by signing of loan agreement amounting to Rs 494 crore with Himachal Pradesh State Co-Operative Bank for development of 66 MW Dhaulasidh REP (DSHEP) coming under Hamirpur and Kangra District of Himachal Pradesh."

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The total project cost of Rs 688 crore is to be financed through a debt equity ratio of 80:20, it added.

Financial closure is a stage of project development when all the conditions of a financing agreement are fulfilled prior to initial availability of funds by the financiers.

The project has already commenced construction activities since May 2021 and will generate 304 million units on completion at a tariff of Rs 4.46/kwh (kilowatt hour