Himachal’s power utility to set up Nepal hydro project

March 4th, 2008 - 5:53 pm ICT by admin  

Shimla, March 4 (IANS) State-owned Sutlej Jal Vidyut Nigam Ltd (SJVNL) will now build a hydropower project in Nepal, marking its entry in the international market. SJVNL won a bid for the 402-MW Arun-III hydropower project, edging out nine other power companies including GMR Energy, Jindal Steel and Power, Reliance Energy and J.P. Associates.

The company signed an agreement with the Nepalese government Monday, a spokesman said here Tuesday.

“According to the contract, SJVNL has agreed to offer 21.9 percent free electricity to the Nepalese government,” the official said.

The Arun-III project will cost Rs.44 billion.

SJVNL has already built and now runs the 1,500-MW Nathpa Jhakri project in Himachal Pradesh, India’s largest hydropower project.

The central government holds 75 percent stake in SJVNL and Himachal Pradesh government owns the rest.

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