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Diplomacy

Nepal Decides to Award Hydropower Project to India’s Satluj Jal Vidyut Nigam

Nepal has decided to award the contract for construction of 679 megawatt Lower Arun Hydropower Project to India’s Satluj Jal Vidyut Nigam (SJVN). This was decided at a meeting of the Investment Board Nepal (IBN), chaired by Nepal Prime Minister KP Sharma Oli. The project was awarded to the SJVN under the Build, Own, Operate and Transfer (BOOT) delivery method.

By Kautilya / February 1, 2021

Nepal has decided to award the contract for construction of 679 megawatt Lower Arun Hydropower Project to India’s Satluj Jal Vidyut Nigam (SJVN). This was decided at a meeting of the Investment Board Nepal (IBN), chaired by Nepal Prime Minister KP Sharma Oli. The project was awarded to the SJVN under the Build, Own, Operate and Transfer (BOOT) delivery method.

Similar to the Arun III hydel project, which will provide 21 per cent free power to Nepal during the concession period, the developer of the Lower Arun hydel project should also prioritise providing certain percent of power free of cost. The developer will hand over the ownership of the project to the government of Nepal after 20 years of commercial operation.

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