September 23, 2021 | Investopaper
GMR Group Of India is going to construct Upper Karnali Hydropower Project. The project is a run-of-the-river hydroelectric project with an installed capacity of 900 MW. The project will be constructed in Dailekh and Achham in Karnali.
The company is about to sign a PPA with the Bangladesh government to export the electricity generated from the project directly to Bangladesh. The company has plans to sell 500 MW of electricity generated from Upper Karnali to Bangladesh. Out of the remaining 400 MW, Nepal will get about 108 MW of free electricity for local consumption. Likewise, the remaining 292 MW of electricity will be sold in the Indian market.
The company expects that the PPA with Bangladesh will be signed by 2021. In Nepal, land acquisition and site clearing work is underway, according to the project.
The Board of Investment had signed the Project Development Agreement with Upper Karnali in 2014. The project is estimated to cost more than Rs 150 billion. It will generate 3,466 gigawatt-hours of energy annually.