Nepal: Investment Board approves Project Development Agreement that will be signed with India’s SVJN
A meeting of the Investment Board Nepal (IBN) has approved the final Project Development Agreement (PDA) draft which will be signed with India’s state-owned SJVN to develop 669 MW Lower Arun Hydropower project, media reports said.
Approval of the PDA for the hydel project to be undertaken in Eastern Nepal comes ahead of Nepal PM Pushpa Kamal Dahal’s India visit which is set to start from Wednesday. The draft is due to be approved by the cabinet, reports ANI.
“The 54th board meeting of the IBN chaired by Prime Minister Dahal approved the draft on Sunday,” a release from the Investment Board Nepal (IBN) stated as quoted by ANI.
The state-owned Indian company, SJVN has formed a local company – Lower Arun Power Development Company in Nepal to undertake the project. Earlier on April 14, the 53rd meeting of the IBN had approved an investment worth 92.68 Billion Nepali rupees which was proposed by SJVN to develop the project.
The proposed hydropower project- Lower Arun will not have any reservoir or dam and will be a tailrace development of Arun-III, which will mean water re-enters the river for the Lower Arun project.