Nepal Signs USD 1.3 Bn Mega-Deal With Indian Company To Develop Hydropower Project
Kathmandu: A mega-deal of USD 1.3 billion was signed with India’s hydropower major Satluj Jal Vidyut Nigam (SJVN) for a 679-megawatt hydropower project in eastern Nepal.
This is the second mega venture undertaken by India in the neighbouring Himalayan nation.
A memorandum of understanding for the project was signed by the Investment Board of Nepal Chief Executive Officer Sushil Bhatta and SJVN Chairman and Managing Director Nand Lal Sharma in Kathmandu on Sunday, according to the Investment Board Nepal.
According to the board, the developer needs to complete the detailed project report of the project and submit it for approval at the board within two years from the agreement date.
The project will be developed under the build, own, operate and transfer (BOOT) model.
The single largest foreign investment project, based on the 2017 cost estimates, is located between Sankhuwasabha and Bhojpur districts in eastern Nepal, according to a press release issued by the Investment Board Nepal.
The 679-megawatt Lower Arun Hydropower project is the second mega project undertaken by India after the USD 1.04 billion 900-MW Arun-3 hydroelectric project.