Kathmandu: In a major favour to New Delhi, a meeting chaired by Nepal Prime Minister KP Sharma Oli awarded a hydropower project to India's Satluj Jal Vidyut Nigam.
The IBN had earlier shortlisted joint-venture company of Hydroelectricity Investment and Development Company (HIDC) and Power Construction of China Ltd (Power China); SJVN of India; and a joint venture of Green Resources Ltd and Electrical Power Development Company to develop the project which has an installed capacity of 900 MW.
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Similar to the Arun III hydel project, which will provide 21 per cent free power to Nepal during the concession period, the developer of the Lower Arun hydel project should also prioritise providing certain per cent of power free of cost, according to the IBN.
The project cost for Lower Arun is estimated at over 100 billion Nepalese rupees.
As per the initial study conducted by Brass Power, the installed capacity of the project can be enhanced to around 1,000 MW if it is developed as a storage-type project.
In September 2019, India had expressed interest to construct the Lower Arun Hydropower Project.
Minister of State for Power, R.K. Singh, had put forth a proposal that the Lower Arun project can be developed by adopting the same model of 900-MW Arun III project.
The developer will hand over the ownership of the project to the government of Nepal after 20 years of commercial operation.
IANS
