Nepal, India sign MoU to construct Arun-4 hydropower project
The project has the capacity of 2.1 billion units of electricity per year.
Nation First News: A bilateral Memorandum of Understanding has been signed between the governments of Nepal and India for the construction of the identified 490.2 megawatt Arun-4 hydroelectric power project.
Nepal Electricity Authority (NEA) Executive Director Kulman Ghising and Indian Hydroelectric Company Satluj Jal Vidyut Nigam Chairman and Operations Manager Nanda Lal Sharma signed the Memorandum of Understanding for the semi-reservoir based joint venture hydropower project between the NEA and Nigam in the presence of the Nepalese Prime Minister Sher Bahadur Deuba and his Indian counterpart Narendra Modi.
NEA has a 49 per cent stake and Nigam 51 per cent in the estimated Rs 79.1 billion project, located upstream of the Arun III hydropower project in Sankhuwasabha district. Nepal will receive 21.9 percent monthly electricity from the project for free. The Nigam will initiate the management of the sale of the electricity produced and the budget for the project.
Nepal has reserved the right to purchase electricity generated from the project if it can afford to consume it. Only then will the electricity generated by the project be sold elsewhere in India or Bangladesh. The project has the capacity of 2.1 billion units of electricity per year.