-  Saturday 24 October 2020

Nepal govt negotiating with Indian Co to award power project

 -  The Times of India

Kathmandu, Jan 27 2008 -  Faced with acute power shortage, Nepal government is negotiating with an Indian company to award a 402 MW hydro power project in the country.

Earlier this week India's GMR Infrastructure bagged a 300 MW hydro-power project in Nepal.

"The government is holding talks with Sutlej Jal Vidyut Nigam for the Arun III power project," Nepal's Water Resources secretary Shanker Prasad Koirala said.

"As the number one bidder GMR has already received the contract to construct Upper Karnali, now we are negotiating with the second highest bidder Sutlej Jal Vidyut Nigam for the Arun III project," he said.

While permitting foreign investment from Indian companies in the hydropower sector, Nepal had decided to award the projects to developer who offers the maximum free power to the country. It also decided to give only one project to a company.

GMR bagged the project after it agreed to provide 12 per cent or 36 MW free electricity from the project to the government.

The government is seeking 22 per cent free energy from the Arun III project, the official said.

The GMR has set a target of two years for preparatory works on the project and it is expected to take another 4.5 years to complete the project, sources said.

Nepal government is expecting to receive 124 MW free energy from the two projects.

The projects were awaiting clearance from the Nepal government for quite some time. While Upper Karnali received 14 proposals, nine companies bid for Arun III.

Source : The Times of India

Other articles by reporter The Times of India

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