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IBN approves second hydropower project to be developed by India

Investment Board Nepal (IBN) has approved the draft project development agreement to be signed with India’s SJVN Limited to develop the 669 MW Lower Arun hyower project in Nepal.The draft is due for approval by the cabinet. SJVN Lower Arun Power Development Company (SLAPDC) is developing the project on a build-own-operate-transfer basis. SLAPDC will operate the facility for a period of 25 years, excluding the construction period of five years, before transferring the ownership to the Nepal government. Nepal will receive 21.9 per cent of the electricity generated at the power plant as free power during these initial 25 years of commercial operations. An investment of NPR 92.68 billion has been approved for the project.

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