Kathmandu, Jan 25 (UNI) GMR Energy Limited of India has been granted permission for the construction of the 300 MW Upper Karnali hydropower project in Nepal.
The company yesterday signed an agreement with the government to complete the project within four-and-a-half years.
It has also agreed to provide 12 per cent of free energy and 27 per cent of share to the government, local media quoted officials, as saying.
Nepal Electricity Authority had estimated that the cost of building the project is about 468.6 million dollars .
The Ministry of Water Resources signed a Memorandum of Understanding (MoU) with the GMR team, led by its Senior Vice President Avinash Shah.
A government team, led by joint secretary at the Water Resource Ministry Anup Kumar Upadhyaya, had negotiated with the company, which was selected as it agreed to fulfill the demands of the government.
The team will soon hold negotiation with another Indian company 'Sutlej', regarding the construction of Arun III project.
The electricity produced from these projects will be exported to India.
UNI XC SG KP1418