1 billion Dollar hydropower deal - Business

1 billion Dollar hydropower deal

Nepal-India Hydro power deal
Nepal-India Hydro power deal

29 NOVEMBER 2014 Kathmandu: Government of Nepal and India signed a deal on Tuesday to build a hydro-power plant costing 1 billion dollar as Indian premier Narendra Modi pays a visit to the Himalayan nation on the occasion of SAARC Summit.

The deal allows India’s state-owned hydro-power and energy company Satluj Jal Vidyut Nigam to construct a 900-megawatt hydro-power project on Nepal’s Arun river, with electricity expected to be generated from 2021.

The two growing nations desperately needed energy to light up their homes and both suffering from crippling electricity shortages and blackouts. Some of the period in the winter season Nepal face up to 18 Hrs of blackouts.

Nepal will receive about 22 per cent of the power generated without baring extra financial burden in their side, while the other 88 percent will be exported to India, according to the Nepal Investment Board.

While signing up the deal Indian Prime Minister said that “When we trust each other, we can move forward very quickly.” He assured some other development work would be carry out in Nepal assisted by India in the future as well.

I feel very satisfied because this Projects was in limbo for more than 25 years are moving forward. Modi sidelines more assistant to Nepal in the future as Our Relation is so unique and trusted each other for centuries.

“This project is an important achievement for both Nepal and India. There is a lot of excitement here to finally sign the agreement,” said Radhesh Pant from the Nepal Investment Board.

Nepal has potential of exporting hydro-power, as its uninterrupted mountain rivers are varied in sized and volume and ecologically very less impact in the environment as its rivers are flows deep in to Georges and less populated zones.