Kathmandu, Mar 3 (UNI) The government of Nepal signed a Memorandum of Understanding (MoU) with India-based Sutlej Jal Vidyut Nigam for construction of 402 MW Arun-III Hydropower Project in eastern Nepal.
Sutlej will complete construction of the project within five years after it arranges necessary funds for implementation of the project, a press release issued here today said. The MoU was signed yesterday.
It will provide 21.9 per cent of free electricity to the Nepal government every month when it starts generating power from the project in addition to royalty and export tax of the electricity.
The Indian company will also reimburse Rs 451.4 million to Nepal government as the amount spent by the government for feasibility study of the project, the release stated.
The Indian power-generating company will be responsible for constructing access road and transmission line as well as conducting Environment Impact Assessment of the project site.
It will have to submit Rs 100,000 per unit before applying for survey license and submit another Rs 500,000 per unit as bank guarantee for power-generation license.
Nigam will construct the project under Build Own Operate and Transfer policy for 30 years.
Joint Secretary at the Ministry of Water Resources, Anup Kumar Upadhyaya and Nigam's Deputy General Manager Sanjay Uppal signed the MoU.
The government had chosen the Indian developer as it agreed to all the conditions set by the government including free energy from the project.
This is the biggest hydro power project of the Himalayan nation.
Despite being the second richest country in water resources in the world, there is load shedding and scarcity of electricity in Nepal.
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