NEA Signs MoU With SJVN Of India To Jointly Construct Arun-4 Hydropower Project

May 17, 2022 | Investopaper

Nepal Electricity Authority (NEA) and Satluj Jal Vidyut Nigam Limited (SJVN Limited) have reached an agreement to jointly construct the Arun-4 semi-reservoir hydropower project at Sankhuwasabha. SJVN Limited is a joint venture of the Central Government of India and the Government of Himachal Pradesh.

The MoU was signed by Kulman Ghising, Executive Director of NEA and Nandalal Sharma, chairman of SJVN Limited on Monday in the presence of Prime Minister Sher Bahadur Deuba and his Indian counterpart Narendra Modi.

The construction of Arun-4 is being taken forward as per the ‘Joint Vision on Cooperation in Energy Sector’ signed between the two Prime Ministers during PM Deuba’s visit to India in Chaitra 2078 BS.

NEA and SJVN will have 49 and 51 percent share ownership in the company to be established  for the construction of the project. Out of the 49 percent share to be owned by NEA, 10 percent will be divested to the locals of the the project affected districts and 15 percent to the general public.

After the complete of the construction, Nepal will get 21.9 percent free electricity from Arun-4 on a monthly basis, similar to the 900 MW Arun III Hydropower Project.

In addition, if the electricity generated from this project can be consumed in Nepal, NEA will have the right to buy it. Otherwise, the electricity will be exported to India or Bangladesh.

The Ministry of Energy, Water Resources and Irrigation had given the survey license of the Arun-4 project to NEA in Karthik, 2078 BS. The current installed capacity of the project is 490.2 MW.

The estimated cost of the project is around Rs. 79.12 billion. The project will generate an average of 2.14 billion units of energy annually.


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