Bhandardara Power House II was built at the Bhandardara Dam, which is located in the Western Ghats, about 150 kilometers northeast of Mumbai in the western state of Maharashtra. The plant is located downstream from the firm’s Bhandardara Power House I.
The plant was initially constructed in 1998 and was being operated by the Government of Maharashtra Water Resource Department (GOMWRD) until December 2006 when the plant was officially handed over to IHDC after its bid was approved by the Government of Maharashtra Water Resource Department.
Power produced from the project is currently being sold to the Maharashtra State Electricity Board (MSEB) by means of a Power Purchase Agreement for an initial term of 30 years.
Debt financing for the execution of the project was provided by the International Finance Corporation (IFC), a member of the World Bank Group, DEG of Germany, and the State Bank of India with equity financing for the project being provided by IHDC and Infrastructure India PLC.
Innovative public-private partnership between the firm and the Government of Maharashtra enabled proceeds from the project to be utilized towards the construction of Nilwande Dam, which improved the region’s irrigation.