Shimla, May 18 (IANS): The 111MW Sawra Kuddu Hydroelectric Project being constructed by Himachal Pradesh Power Corporation Limited (HPPCL) in Shimla district would be commissioned by next year, an official said on Wednesday.

The hydro project, which will generate 386 million units (MU) per annum, is expected to be commissioned by December 2018, an HPPCL spokesperson told IANS.

He said HPCCL's Managing Director Devesh Kumar visited the project site on Wednesday and inspected the progress of work.

Kumar inspected the diversion barrage, underground powerhouse and the head race tunnel. An official statement quoting Kumar said the works of diversion barrage and the powerhouse have been completed. The 350 m-long head race tunnel is now progressing and will be completed by this September.

The Sawra Kuddu Hydroelectric Project is a run-of-river project on the Pubber river in Jubbal tehsil.

The diversion barrage is located near Hatkoti and the powerhouse is located on the left bank of Pabbar river near Snail village.

After commissioning each project, affected families will be provided 100 units of electricity per month for a period of 10 years. In addition, one per cent of revenue from power generation shall be contributed towards the local area development fund during the operation stage.

Himachal Pradesh's economy is highly dependent on hydroelectricity, horticulture and tourism.

State's hydroelectricity generation potential is 27,436 MW -- about 25 per cent of India's total potential in the sector.

However, only 10,351 MW has been harnessed till December 2016, which is 37.73 per cent of the total potential, says the state's Economic Survey 2016-17.