Centre clears Rs 5,700-crore hydro project to be set up in Nepal

NEW DELHI: The Cabinet Committee on Economic Affairs has approved Rs 5723.72 crore by state-owned SJVN Limited in the 900-mw Arun-III hydropower project in Nepal, power, coal, renewable energy and mines minister Piyush Goyal said on Monday.

Financial closure for the project is expected to be achieved by September this year and it is scheduled to be completed after five years. The project, located on Arun river in Sankhuwasabha district of eastern Nepal, envisages about 70 meter high concrete gravity dam.

SJVN bagged the project through international competitive bidding and an MoU was signed between Nepal and SJVN Limited in March 2008 for execution on build-own-operate-transfer basis for 30 years including five years of construction period. The project will offer 21.9% free power to Nepal for 25 years and generate employment of around 3000 persons in India and Nepal.

The project will provide surplus power to India strengthening power availability in the country and will also strengthen economic ties with Nepal. The power from the project shall be exported from Dhalkebar in Nepal to Muzaffarpur in India, an official statement said.