22 NOVEMBER 2014 KATHMANDU – Much Awaited and Most Controversial Hydro power Project in Nepal has finally been approved by the government of Nepal with PDA agreement with Indian Power company Satlaj Hydel Company.
It was earlier progressed with American Power and energy company ANRON which has now bankrupted back in 2007 and left the project without signing the PDA with Nepal. It was agreed to finance by World Bank earlier back in 1990’s but due to political instability in Nepal, world bank group has removed its hand and left the project untenanted for several years.
Finally after 24 Years of its first PDA agreed, One of the largest Hydro power company of India has interested and now agreed to take the project to complete its construction work withing 5 Years and run the project for 25 years before it would handover to Nepal for free.
According to the News reports, The Investment Board has approved the Project Development Agreement (PDA) to be formalized with Satjal Hydel Company, the Indian promoter of the 900 megawatt Arun III Hydro Power Project.
The Board meeting held Friday handed a deadline until November 24 to incorporate the subjects of concern raised by major political parties and the stakeholders.
The signing ceremony of the project is scheduled to take place in the presence of Prime Minister Sushil Koirala and his Indian counterpart Narendra Modi in the sidelines of the 18th South Asian Association for Regional Cooperation (SAARC) Summit.
The Board’s Chief Executive Officer Radhesh Pant and Satjal Executive Director RK Agrawal had reached an agreement for the PDA on November 5.
The project, which aims to export electricity to India, is slated to be complete in the next five years.
“The Arun III Hydro Power Project PDA has been approved,” said Energy Minsiter Radha Gyawali after the meeting and added, “The remaining works will be completed in co-ordination between the Energy Ministry and the Board.”
The government plans to present the full draft of the PDA before the cabinet meeting to be held on November 24.
The Indian company Satajal will provide Nepal 21.9 per cent electricity for free which amounts to 197 megawatt.
Meanwhile, the Board meeting also extended the time to hold talks with SN Power, the promoter company of Tamakoshi hydro-power project. The 880 MW project is based in Dolakha district.
The Board is preparing a PDA to be signed with the promoter company soon.
Nepal’s Natural resources which is water, jungle and mountains can be utilized for the development of the nation but there are lots of Irregularities which were delaying the work for several years.