The Cabinet Committee on Economic Affairs, headed by Prime Minister Narendra Modi, has approved an investment of Rs 5,792 crore in a hydropower project in Nepal, which is being developed by SJVN Ltd.
The 669-megawatt Lower Arun hydroelectric project is located downstream of another 900 MW plant on the river Arun in the Sankhuwasabha district of Nepal. This project is designed to generate 2,900 million units of energy annually.
Government-run SJVN bagged the project last year through international competitive bidding and the project is being implemented on build-own-operate and transfer basis with active support from the Indian government.
The mega hydel power project is expected to be commissioned within five years.
The generated power will be sold to India via a transmission line up to Sitamarhi, Bihar.
Last month, SJVN received an investment from the Indian Renewable Energy Development Agency Ltd. of Rs 290 crore through special purpose vehicles for setting up a 900 MW Upper Karnali hydropower project in Nepal.
The project is in advanced stages of development and will be the country's largest hydropower plant after completion. It will be connected to the Indian grid through dedicated transmission lines, which will be developed by GMR Group through a Nepal-based subsidiary.
Shares of SJVN closed 1.74% lower at Rs 143.9 apiece, ahead of the announcement, compared to a 1.08% decline in the benchmark BSE Sensex.
RECOMMENDED FOR YOU
DLF To Invest Rs 8,000 Crore In Ultra-Luxury Housing Project In Gurugram Amid Rising Demand
Nov 03, 2024
Centre Approves Two Railway Projects Worth Rs 6,798 Crore
Oct 24, 2024
Cabinet Approves Rs 2,642 Crore Varanasi-DDU Multi-Tracking Project
Oct 16, 2024
JSW Energy Inks Agreement With Maharashtra Discom For 1,500-MW Hydro Energy Storage
Oct 11, 2024
POPULAR