SJVN grabs another mega Hydro Project in Nepal, signs MoU

New Delhi: The meeting between the Prime Minister of Nepal KP Sharma Oli and SJVN CMD Nand Lal Sharma went successful and has resulted in the power PSU grabbing yet another hydro project in Nepal. SJVN Limited on Sunday signed a memorandum of understanding (MoU) for the development of a mega Hydro Power Project in Nepal. "The MoU has been signed for the development of 679 MW Lower Arun HEP between SJVN and the Investment Board of Nepal (IBN) in Kathmandu Nepal. The MoU has been signed by SJVN's Chairman & Managing Director (CMD) Nand Lal Sharma and IBN's Sushil Bhatta" an official statement released by SJVN mentioned.

The MoU has been signed in the benign presence of Deputy Prime Minister of Nepal Bishnu Prasad Paudel and Ambassador of India to Nepal Vinay Mohan Kwatra. On this occasion, SAPDC's CEO Arun Dhiman and SAPDC's CFO Jitender Yadav were also present along with other senior officials from the government of Nepal and SJVN Limited.

Sharma informed that the SJVN has bagged 679 MW Lower Arun HEP through the international competitive bidding (ICB), which involved big players. The Lower Arun Hydro Electric Project is located in Sankhuwasabha and Bhojpur Districts of Nepal. The project will not have any reservoir or dam and will be a tailrace development of 900 MW Arun 3 HEP. The project will have four Francis type turbines. On completion, the project will generate 2,970 million units of electricity per annum. The project is scheduled to be completed in four years after the commencement of construction activities. The project has been allocated to SJVN for 25 years on a BOOT basis.

ALSO READ:

1. SJVN CMD calls on PM Nepal for more hydro projects

2. SJVN pursuing solar power aggressively, will add 10 GW solar capacity by 2030: CMD

Sharma expressed gratitude to the government of Nepal for keeping their faith in the abilities and capabilities of SJVN by selecting it as the developer for Lower Arun HEP. He also thanked the Ministry of Power for supporting SJVN in all its endeavours in India and abroad. He informed that SJVN started its journey in Nepal in the year 2008 by signing MoU for the implementation of the 900 MW Arun-3 project. The project construction activities commenced with the laying of foundation stone jointly by Prime Minister of India Narendra Modi and Prime Minister of Nepal, KP Sharma Oli in 2018 with the active help and support of IBN and the government of Nepal.

Sharma further told that the 900 MW Arun-3 Hydro Electric Project has achieved significant progress in the last three years despite the global pandemic of COVID-19, as construction activities of the project are in full swing. In order to mitigate any delays due to the pandemic, SJVN has already implemented an acceleration plan and is committed to commissioning this project ahead of schedule. He also emphasised that such progress could not have been achieved without the continuous support of IBN and the government of Nepal. The requisite approvals were granted in the shortest possible time despite the challenges faced due to pandemic.

Sharma stressed that hydropower has to be developed with an integrated river basin development approach for economic viability and boost infrastructural development. This approach will result in the optimisation of resources and faster project completion at a lower cost. He also requested Nepal's government for providing further the opportunity to SJVN to partner with the government for harnessing hydropower in Nepal.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)