JSW Energy Ltd. said its wholly-owned step down subsidiary JSW Energy Kutehr Ltd. has signed a power purchase agreement (PPA) with Haryana Power Purchase Centre (HPPC) for supply of 240 MW hydro power.

The PPA is valid for 35 years (with further extension possible at mutually agreed terms), and signed at a levelised ceiling tariff of ₹4.50/kWh (at ex bus-bar), the company said in a statement.

The PPA capacity was selected through competitive bidding under Expression of Interest invited by the HPPC on July 3, 2018, it added.

JSW Energy Kutehr is currently constructing the 240 MW (3×80 MW) hydro-electric plant located in Kutehr, Chamba district of Himachal Pradesh.

“The project construction is progressing well ahead of its schedule, with 65% tunnelling work completed by February 2022 and is expected to be commissioned by September 2024,” the company said.

Haryana Power Purchase Centre will purchase the power on behalf of Uttar Haryana Bijli Vitran Nigam (UHBVN) and Dakshin Haryana Bijli Vitran Nigam (DHBVN).

With the Board approval for corporate re-organisation in place, the renewable energy businesses (Green) including hydro assets are to be housed under a wholly-owned subsidiary JSW Neo Energy Ltd.

Prashant Jain, joint managing director and CEO of JSW Energy, said, “The construction of the project is in full-swing and will be completed in a record time in India.”