The government on Wednesday approved a 900 MW hydro power project to be set up in Sankhuwasabha district of Nepal at a cost of Rs 5,723.72 crore.
The decision to approve the Arun-III project was taken at a meeting of the cabinet committee on economic affairs headed by Prime Minister Narendra Modi on Wednesday.
“The project is expected to achieve financial closure by September this year. The projected will be implemented within five years,” power minister Piyush Goyal said.
The project is being implemented by a 100% subsidiary of state-run SJVN Ltd.
SJVN Ltd is a joint venture between Central and Himachal Pradesh governments with shareholding of 64.46% and 25.51%, respectively.
“The Union cabinet has approved the project and its investment. It was awaited. The project is being implemented by 100% subsidiary of SJVN Ltd,” SJVN Ltd chairman and managing director RN Misra said.
The subsidiary SJVN Arun-3 Power Development Company Pvt Ltd (SAPDC) was incorporated and registered on April 25, 2013 as a private limited company under Nepal’s Companies Act.
The Memorandum of Understanding (MOU) for the project was signed with the government of Nepal on March 2, 2008.
The project is located in the Sankhuwasabha district of Nepal, 657 km from Kathmandu via Birat Nagar.
The survey licence for generation was issued by the government of Nepal during July 2008. Survey and investigation works were completed in January, 2011.
The DPR (detailed project report) was vetted by central electricity authority on June 9, 2014.