The eight-year loan package will help finance the construction of several run-of-river hydropower generating plants that will bring in combined generation of 850 mega watt. The loan agreement will ensure construction of the Sawra-Kuddu (111 mw); Kashang-I, II and III (195 mw), Sainj (100 mw) and the Shongtong-Karchham Project (450 mw), which had been assigned to Himachal Pradesh Power Corporation Ltd (HPPCL). The first tranche of the project was signed on November 10, 2008, for $150 million. Talking to FE, HPPCL managing director Tarun Kapoor said, "Work has commenced on the Sawara-Kuddu and Kashang projects. Civil work contract for the Sawara-Kuddu project has been awarded to the Mumbai-based Patel Engineering, Kirloskar Construction of Chennai and Coastal Joint Venture of Hyderabad. For the Kashang plant, civil work has been awarded to Hindustan Construction Co.