SJVN signs agreement with Nepal for 900 MW hydro project

North Gazette News/ Shimla
Leading hydro power producing firm SJVN Limited has signed a Project Development Agreement for the implementation of 900 MW Arun-3 Hydro Electric Project with the Government of Nepal which was long awaited.

The agreement was signed at Kathmandu in the presence of Prime Minister of India, Narendra Modi and Prime Minister of Nepal Sushil Kumar Koirala by R.P. Singh, Chairman & Managing Director, SJVN Limited and Radesh Pant, Chief Executive Officer, IBN, Govt. of Nepal on November 25, 2014 a day before the 18th SAARC Summit.

The Arun-3 Hydro Electric Project will be executed by Indian SJVN Limited through its wholly owned subsidiary SJVN Arun-3 Power development Co. Pvt. Ltd. The project will generate 4012 MU annually through its 4 units of 225 MW each. Some of Project features include 68 m high concrete gravity DAM,11.7 KM long HRT of 9.5m Dia for a design discharge of 343 cumcs,149 m deep Surge shaft and a underground power house. The evacuation of power from the generating station will be through two nos. of 400KV circuit of 310 km length to be connected with Indian grid at Muzaffarpur.

The Project cost is estimated at around ` 7000 Crore and will be executed with a 75:25 debt to equity ratio. The Govt. of Nepal has exempted the Project from payment of 50% custom duty, refund of VAT @ NPR 50 Lakh per MW after COD and exempt from payment of income tax for first 10 Years and thereafter 50% for next five years. The project will achieve financial closure in 24 months and COD within 60 Months thereafter. The concession term of the project is 25 Yr after COD. 78.1 % generated power will be brought to Indian grid and estimated tariff including transmission charge will be ` 4.95 per Unit.

SJVN was awarded the work of execution of Arun-3 Project under International Competitive Bidding in the year 2008. SJVN has already deployed the staff for its execution. Detailed Project Report (DPR) of the Project is ready. The execution of the Project was awaiting signing of Project Development Agreement; which has now been signed.

SJVN already has three power stations in operation with an installed capacity of 2000 MW including India’s largest 1500 MW Nathpa Jhakri Hydro Power Station. The Company, which has already diversified in the field of Wind Power, Solar Power, Thermal Power and Power Transmission is in the process of adding 5000 MW of capacity from its ten up coming projects in the states of Himachal Pradesh, Uttarakhand, Arunachal Pradesh, Bihar, Maharashtra besides neighboring countries Nepal and Bhutan.