Kathmandu, February 21
India’s government on Wednesday approved a 900 MW reservoir-type Arun-III power project to be set up in Sankhuwasabha district at a cost of INR 57.23 billion.
According to PTI, the decision to approve the Arun-III project was taken at a meeting of the cabinet committee on economic affairs headed by Prime Minister Narendra Modi on Wednesday.
“The project is expected to achieve financial closure by September this year. The projected will be implemented within five years,” power minister Piyush Goyal told PTI.
The Union cabinet has approved the project and its investment. It was awaited. The project is being implemented by 100% subsidiary of SJVN Ltd,” SJVN Ltd chairman and managing director RN Misra said. SJVN’s (Satlaj’s) Nepali subsidiary is developing the project.
The Memorandum of Understanding (MOU) for the project was signed with the government of Nepal on March 2, 2008. The survey licence for generation was issued by the government of Nepal during July 2008. Survey and investigation works were completed in January, 2011. The DPR (detailed project report) was vetted by central electricity authority on June 9, 2014.
Of the electricity generated by the project, around 80 per cent is to be exported to India. The project is to be run by the company for 25 years and handed over to Nepal after 25 years.