S Kumar group promoted Shree Maheshwar Hydel Power Corporation (SMHPCL) , the first private sector project in Madhya Pradesh is likely to start electricity generation from next financial year, officials said on Monday.

This 400 MW project on river Narmada in Khargone district is nearing completion and is likely to generate power from next financial year, Madhya Pradesh Energy Department Additional Secretary R K Katare said.

He said that 10 units of 40 MW each (10 x 40 mw) will generate 400-MW electricity, adding that this is the first big private venture in hydel power sector in Madhya Pradesh and will cost about Rs 2600 crore.

Katare said that under the agreement signed between SMHPDL and Madhya Pradesh State Electricity Board, the State will get 100 per cent electricity from this project and the power tariff will be determined by Madhya Pradesh Electricity Regulatory Commission.