IL&FS may pick 15% in Nepal power project

NEW DELHI: IL&FS is set to acquire a 15% stake in the 750-MW West Seti hydro power project in Nepal.

The project, developed by Australian hydroelectric company Snowy Mountain Engineering Corporation (SMEC), will supply the entire electricity produced from the plant to India.

“IL&FS has shown keen interest to join the project as equity partner. They have already attended our first shareholders’ meeting and are conducting due diligence of the project.

We expect them to sign the shareholders’ agreement soon,” Himalaya B Pande, director, West Seti hydro project, told ET. IL&FS will invest nearly $ 45 million in the $1.2-billion project.

The project is being developed with $300 million equity and $ 900 million debt. SMEC is the lead promoter with 26% equity.

Other equity partners include ADB, the government of Nepal, China National Machinery and Equipment Import Export Corporation, all holding 15% equity each.