SJVN to develop 402-MW Arun III power plant

Kathmandu: The government has decided to award the 402-MW Arun III project to India’s Sutlej Jal Vidyut Nigam (SJVN), as the Sutlej agreed to all the conditions set by the government.

The Ministry of Water Resources (MoWR) today signed an MoU with a SJVN team led by its deputy general manager Sanjay Upal. The decision was taken after Sutlej agreed on the conditions set by the government, said Anup Kumar Upadhyay, joint secretary at MoWR, who inked the agreement on behalf of Nepal government.

As per the nine-point MoU, Sutlej will provide 21.9 per cent (88 MW) free energy and pay Rs 451.4 million for costs involved in project feasibility and detailed report to Nepal. The developer will also have to pay royalties and export duty to Nepal in accordance with existing government policy, as well as build transmission links and access road up to the project site.

The developer will have to handover the project to the government under build-own-operate and transfer system after 30 years. The total cost of the project has been estimated at $860 million. The project site is located in Shankhuwasabha.