(MENAFN- IANS) New Delhi, June 1 (IANS) State-owned SJVN on Thursday signed an agreement for 669 MW Lower Arun Hydro Electric Project in Nepal, the company said, adding that it would be constructed in five years with an outlay of Rs 5,792 crore.
The pact was signed in the presence of Prime Minister Narendra Modi and his Nepalese counterpart Pushpa Kamal Dahal, aka Prachanda, here.
The agreement was signed by SJVN Chairman and Managing Director, Nand Lal Sharma, and the CEO of the Investment Board of Nepal, Sushil Bhatta.
Speaking on the occasion, Sharma said SJVN is committed to make Lower Arun HEP a model hydro project with complete execution, from concept to commissioning, within seven to eight years. As one of major achievement, the detail project report (DPR) has been prepared by SJVN in record time and its approval by both governments was the fastest till date.
He expressed gratitude to Prime Minister Modi for his continual guidance and Nepal Prime Minister Dahal for showing confidence in SJVN as a development partner. He also thanked the Ministry of Power, the Ministry of External Affairs and the Ministry of Jal Shakti for the support extended in accelerating necessary techno-economic approvals of the project.
"This is our second large-scale investment in Nepal after the 900 MW Arun-3 HEP, which is in advance stage of construction. Now, our target is to start the construction of the new project in the current fiscal after obtaining investment approval from the government of India," an official statement quoting Sharma said.
Highlighting the salient features, he said the project would be constructed in five years at a cost of Rs 5,792 crore with a levelised tariff of Rs 4.99 per unit. The project will be developed on BOOT basis and on completion it will generate 2,901 million units of energy annually.
In addition to this, SJVN is also developing 217-km-long associated transmission network for power evacuation and export to India.
The 669 MW Lower Arun Hydro Electric Project is located in Sankhuwasabha and Bhojpur districts of Nepal.
Shimla-headquartered SJVN won the project through international competitive bidding in February 2021 and the MoU was signed in July 2021.
SJVN is already operating India's largest underground 1,500 MW Nathpa Jhakri Hydro Power Station in tandem with the 412 MW Rampur Hydro Power Station in Himachal Pradesh.
Presently, SJVN is executing three hydro projects of 2,059 MW in Nepal. The 900 MW Arun-III HEP is in advance stage of construction and the 490 MW Arun-IV will be developed in joint venture mode by SJVN and Nepal Electricity Authority.
SJVN is targeting 5,000 MW projects in Nepal by 2030.
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