Indian Cabinet approves US$854.4 million for a hydropower project to be set up in Nepal
The Cabinet Committee on Economic Affairs chaired by Hon’ble Prime Minister of India, Sh Narendra Modi has approved the investment proposal for 900 MW Arun –III Hydro Electric Project in Nepal.
The project is located in Sankhuwasabha District of Nepal on the river Arun and is a run-of-the-river project. Sh. R.N. Misra Chairman & Managing Director, SJVN Limited along with other senior officials paid a visit to the Office of Hon'ble Union Minister of Power Sh. Piyush Goyal and conveyed his sincere thanks for showing faith in Team SJVN.
Shri R.N. Misra, Chairman & Managing Director informed that a 70 meter high gravity dam will be constructed from which water will be diverted into 11.74 km Head Race Tunnel (HRT). The power house will consist of 4 Vertical Francis type generating units of 225 MW each amounting to 900 MW of electricity. In a 90% dependable year the power station will generate 4018 Million Units of electricity.
Shri Misra further told that the project will be executed through SJVN Arun III Power Development Company (SAPDC), which is a wholly owned subsidiary of SJVN. The company has already been registetred in Nepal as per Nepalese Companies Act on 25.04.2013. The estimated cost of project is INR57,237.2 million (US$855.73 million) at May 2015 price levels. Completion Period of the project shall be 60 months from the date of financial closure which is planned for September 2017.
SJVN bagged the project through International Competitive Bidding and Memorandum of Understanding (MOU) was signed with the Govt. of Nepal for the execution of 900 MW Arun – III HE Project on BOOT basis. The project will generate employment for around 3000 persons in the construction phase.
The Project Development Agreement (PDA) signed on 25.11.2014, which provides 21.9% free power to Nepal for the entire concession period of 25 years. The surplus power from the project shall be exported from Dhalkebar in Nepal to Muzaffarpur in India.
The project will provide surplus power to India strengthening power availability in the country and will also strengthening economic linkages with Nepal.
