June 1: Satluj Jal Vidyut Nigam, a hydropower generating company of India, is to construct the Lower Arun Hydropower Project in eastern Nepal. A bilateral agreement was reached in this regard on Thursday during Prime Minister Pushpa Kamal Dahal’s official visit to India.
The company has also been undertaking the construction of the Arun-III Hydropower Project.
A project development agreement (PDA) was signed between Nepal and India in the presence of Prime Minister Pushpa Kamal Dahal and his Indian counterpart Narendra Modi amidst a function in New Delhi.
Chief Executive Officer of the Investment Board, Nepal (IBN) Sushil Bhatta, and Chairman of Satluj Company, Nanda Lal Sharma, signed the PDA on behalf of their respective sides.
The 54th meeting of the Investment Board on May 28 chaired by Prime Minister Dahal had taken a decision on necessary homework on the PDA. The meeting approved the draft of PDA to be signed with the developer company and forwarded it to the Council of Ministers for approval. The Cabinet meeting later endorsed the PDA.
The entire power produced from the project will be exported, which is believed to contribute to the economic development of the country.
The Investment Board had approved an investment of Rs 92.68 billion for the 669-MW capacity project. -- RSS