You are here: Home » International » News » Economy
Business Standard

Nepal signs pact with SJVN for 679 MW Lower Arun Electric Hydel Project

Nepal Investment Board has said it has signed a pact with India's state-owned SJVN Ltd to develop the 679-megawatt (MW) Lower Arun Hydro Electric Project in eastern Nepal

Nepal | SJVN | Hydro power projects


Representative image
Representative image

Investment Board has said it has signed a pact with India's state-owned Ltd to develop the 679-megawatt (MW) Lower Arun Hydro Electric Project in eastern .

In a statement on Sunday, the National Investment Board of the Himalayan Nation announced that the pact was signed with India's state-owned Satluj Jal Vidyut Nigam (SJVN) which is the second mega project undertaken by Southern neighbour.

The memorandum of understanding MoU was signed by SJVNL Chairman and Managing Director Nand Lal Sharma and IBN Chief Executive Officer Sushil Bhatta.

Second, after the Arun-3 hydropower project, the Lower Arun Hydel project is expected to cost around 1.3 billion dollars, the single biggest foreign investment project, as per 2017 cost estimates.

Prior to the latest project, India is building 900 MW Arun-3 project at an estimated cost of 1.04 billion dollars in the Arun river which is located in Sankhuwasabha district. Lately signed Lower Arun Hydel Project lies in Bhojpur district of the Himalayan Nation.

As per the statement, the developer should complete the detailed project study of the project and submit the report for approval at the board within two years from the agreement.

"The project will be built under the build, own, operate and transfer (BOOT) model," the statement further stated.

The project will not have any reservoir or dam and will be a tailrace development of Arun-3 hydro project, which will mean water re-enters the river for the Lower Arun project.

In 2018, Prime Minister KP Sharma Oli and Indian Prime Minister Narendra Modi jointly laid the foundation stone for the Arun-3 Hydropower Project, remotely from Kathmandu.

SJVN's current installed capacity stands at 2,016 MW and it aims to be a 25,000 MW entity by 2040.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, July 12 2021. 08:56 IST