State-owned SJVN Ltd said on Sunday it has signed an agreement with the Nepal Investment Board (IBN) to develop the Lower Arun 679 megawatt (MW) hydropower project in the country.
A memorandum of understanding has been signed between SJVNL and the Nepal Investment Board (IBN) for the development of the 679 MW HEP Lower Arun in Kathmandu, Nepal, according to a company statement.
The MoU was signed by SJVNL Chairman and CEO Nand Lal Sharma and IBN CEO Sushil Bhatta.
The pact was signed in the presence of Nepalese Deputy Prime Minister Bishnu Prasad Paudel and Indian Ambassador to Nepal Vinay Mohan Kwatra.
On this occasion, Arun Dhiman, CEO of SJVN Arun-3 Power Development Company (SAPDC), and Jitender Yadav, CFO of SAPDC, were also present, along with other senior officials from the government of Nepal and SJVNL.
Nand Lal Sharma said SJVNL bagged 679 MW from Lower Arun HEP in an international tender (ICB), which involved large players.
The Lower Arun hydroelectric project is located in the Sankhuwasabha and Bhojpur districts of Nepal.
The project will not have a reservoir or dam and will be a 900 MW Arun-3 HEP tail run development.
The project will include four Francis turbines. When completed, the project will generate 2,970 million units of electricity per year.
The project is expected to be completed within four years after the start of construction activities.
The project has been awarded to SJVN for 25 years on a build-own-operate-transfer (BOOT) basis.
Sharma expressed her deepest gratitude to the government of Nepal for maintaining confidence in the capabilities and capabilities of SJVN by selecting him as the developer for Lower Arun HEP.
He also thanked the Union Ministry of Energy for supporting the SJVN in all its efforts in India and abroad.
He further informed that SJVN started his trip to Nepal in 2008 by signing the pact for the implementation of the 900 MW Arun-3 project.
Construction activities for the project began with the laying of the foundation stone jointly by Prime Minister Narendra Modi and his Nepalese KP Sharma Oli in 2018, with the active help and support of IBN and the Government of Nepal.
Sharma further said that the 900 MW Arun 3 hydroelectric project had made significant progress over the past three years despite the COVID-19 pandemic, as construction activities on the project were in full swing.
To mitigate the delays due to the pandemic, SJVN has already put in place an acceleration plan and is committed to commissioning this project sooner than expected.
He also stressed that such progress could not have been achieved without the continued support of the NBI and the Government of Nepal.
The required approvals were granted as quickly as possible despite the challenges encountered due to the pandemic.
Nand Lal Sharma stressed that hydropower should be developed with the integrated river basin development approach for economic viability and to boost infrastructure development.
This approach will result in optimization of resources and faster completion of projects at lower cost.
He also called on the government of Nepal to provide a new opportunity for SJVN to partner with the government to harness hydroelectric power in Nepal.
SJVNL’s current installed capacity is 2,016.51 MW and aims to be a 5,000 MW enterprise by 2023, a 12,000 MW enterprise by 2030 and a 25,000 MW entity by 2040.
SJVNL is present in various sectors of energy production, including hydroelectricity, wind, solar and thermal. It is also present in the transmission of energy.
(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)