Nepal's Supreme Court on Sunday upheld the government's decision to award the 402 MW Arun-III hydropower project to India-based Sutlej Jal Vidyut Nigam, quashing a writ petition filed by another Indian company Jindal Steel.
The court quashed the writ petition filed by Delhi-based Jindal Steel and Power Limited (JSPL) against the government's decision to award the contract to Sutlej JVN two years ago, sources at the Ministry of Energy said.
The government decision became controversial after the JSPL moved the Supreme Court arguing that the government should have selected it in place of Sutlej as a government committee had assessed it as the best company for the project based in Sankhuwasabha district of eastern Nepal.
According to the sources, the Sutlej JVN will complete construction of the project within five years after it arranges necessary fund for its implementation.
Nepal is currently facing shortage of power and the production of the hydropower from Arun-III will mainly serve its domestic demands.