New Delhi: A memorandum of understanding (MoU) for the development of the 490 MW Arun-4 Hydro Electric Project in Nepal has been signed in Lumbini, Nepal in the benign presence of Prime Minister of India Narendra Modi and Prime Minister of Nepal Sher Bahadur Deuba. This historic MoU has been signed by SJVN Limited's Chairman & Managing Director (CMD) Nand Lal Sharma and Nepal Electricity Authority (NEA) Managing Director Kulman Ghising.
Speaking on the occasion Sharma said that the 490 MW, Arun -4 Hydro Electric Project will be developed in joint venture mode by SJVN and Nepal Electricity Authority (NEA) and in this JV, SJVN will be the majority stakeholder. The construction of this project upstream of Arun-3 HEP, will be taken up by this JV, which on completion shall generate around 2100 million units (MU) of energy per annum. The estimated developmental cost of this project which is situated in Sankhuwasabha District Province-1 of Nepal is Rs 4900 crores.
Sharma further emphasized that the signing of this MoU is a landmark step towards achieving India-Nepal Joint Vision on Power Sector Cooperation.
Sharma further informed that this will be the third mega project to be constructed in Nepal by SJVN, in addition to the already under construction 900 MW Arun-3 and 669 MW Lower Arun which is in the survey and investigation stage. With the signing of this MoU, SJVN now has three projects of a total 2059 MW portfolio, in Nepal. Sharma further reiterated his resolve of SJVN targeting 5,000 MW projects in Nepal by 2030.
The advocacy of the concept of the Integrated River Basin Development Approach is the brainchild of Sharma. Sharma had long emphasized following this approach in various national or international forums, resulting in the allocation of hydro projects in one single river basin to one developer, in Nepal also. This approach enables optimum utilization of Manpower, Infrastructure and Financial Resources. He expressed satisfaction, that this novel concept has been accepted by Nepal Government as well as in India, by the State Governments of Himachal Pradesh and Arunachal Pradesh.
Sharma further stated that the projects being developed by SJVN in Nepal will result in the overall development and boost mutual economic growth in India and Nepal. He said that the Infrastructural Development related to project activities would ensure the overall socio-economic development of the region. In addition to these three hydro projects in Nepal, SJVN is also constructing a 217 km 400 kV associated transmission system for evacuation of Power.
"With total portfolio of around 31,500 MW, SJVN now has Power Projects of more than 30 GW capacity under operation and different stages of development. These recent additions of New Projects are leading the company towards actualizing of its shared vision of 5,000 MW by 2023, 25,000 MW by 2030 and 50,000 MW installed capacity by 2040," said Sharma.
Sharma expressed his gratitude to the Prime Ministers, Ministry of Power and Ministry of External Affairs, and the Indian Embassy in Nepal for reposing faith and considering SJVN the developer of Arun 4 HEP.
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