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Luhri Stage-II hydroelectric project proposes for construction of a concrete gravity dam of ±71m high from the deepest foundation level across river Satluj near Nanj village and falls in districts of Shimla and Mandi of Himachal Pradesh. The Project proposed for run of river scheme and generating 172 MW power. Underground powerhouse and its appurtenant structures are proposed on the left bank. The rock exposed on both the banks of the Dam site and the Powerhouse area is the greyish-pink Dolomite/limestone belonging to Shali/Larji Group (Khatpul /Tattpani Formation). A very thin layer of overburden on the left bank and very thick terrace deposits resting over the Dolomite/limestone was observed on the right bank from El ± 820m. It was anticipated that terrace formed due to an ancient river channel. Geological mapping and topography of the area have pointed to the presence of a Buried channel. A combined geophysical survey comprising Refraction Microtremor (ReMi) and Multi-Channel Analysis of Surface Wave (MASW) has been carried out at Nanj Terrace (right bank) to delineate the suspected paleochannel. It is concluded by the geophysical study that the upper layer comprising soil/highly weathered rock varies in thickness from 1.0 m to 60m. In contrast, moderately weathered rock resting below the upper layer of soil/highly weathered rock is projected to a maximum depth of about 100 m. Beyond a depth of 100m, it is presumed to have similar or better rock strength.