Shimla: Nepal and India have signed a Memorandum of Understanding (MoU) for development of 490 MW Arun-4 Hydro Electric Project in Nepal. The MoU was signed by Mr Nand Lal Sharma Chairman & Managing Director, SJVN, the Indian power company that will develop the project & Mr Kulman Ghising Managing Director, Nepal Electricity Authority (NEA) at Lumbini, Nepal in the presence of Prime Minister of Narendra Modi and Prime Minister of Nepal Sh. Sher Bahadur Deuba.
Speaking on the occasion Sharma said that the 490 MW, Arun -4 Hydro Electric Project will be developed in Joint Venture (JV) mode by SJVN and Nepal Electricity Authority (NEA) and in this JV, SJVN will be majority stakeholder. The construction of this project upstream of Arun-3 HEP, will be taken up by this JV, which on completion shall generate around 2100 Million Units of energy per annum. The estimated developmental cost of this Project which is situated in Sankhuwasabha District Province-1 of Nepal is INR 4900 Crores.
Sharma emphasized that the signing of this MOU is a landmark step towards achieving India-Nepal Joint Vision on Power Sector Cooperation.
He informed that this would be the 3rd Mega Project to be constructed in Nepal by SJVN, in addition to the already under construction 900 MW Arun-3 and 669 MW Lower Arun which is in Survey and Investigation Stage. With signing of this MoU, SJVN now has three projects of total 2059 MW portfolio, in Nepal. Sharma reiterated his resolve of SJVN targeting 5000 MW Projects in Nepal by 2030.
The advocacy of the concept of Integrated River Basin Development Approach is the brainchild of Sharma, who has long emphasized of following this approach in various National/International forums, resulting in allocation of Hydro Projects in One Single River Basin to One Developer in Nepal also. This approach enables optimum utilization of Manpower, Infrastructure and Financial Resources. He expressed satisfaction, that this novel concept has been accepted by Nepal Government as well as in India, by the State Governments of Himachal Pradesh & Arunachal Pradesh.
Sharma further stated that the Projects being developed by SJVN in Nepal will result in overall development and boost mutual economic growth in India & Nepal. He said that the Infrastructural Development related to project activities would ensure overall socio-economic development of the region. In addition to these three Hydro Projects in Nepal, SJVN is also constructing 217km 400 kV associated transmission system for evacuation of Power.
“With total portfolio of around 31500 MW, SJVN now has Power Projects of more than 30 GW capacity under operation & different stages of development. These recent additions of New Projects are leading the company towards actualizing of its Shared Vision of 5000 MW by 2023, 25000 MW by 2030 & 50000 MW installed capacity by 2040.” said Sharma.