Nepal, India sign agreement to construct Arun-4 hydel project

Nepal Electricity Authority Executive Director Kulman Ghising and Indian hydropower company Satluj Jal Vidyut Nigam (SJVN) Chairperson and Operation Manager Nanda Lal Sharma exchange MoU in the presence of Prime Minister Sher Bahadur Deuba and his Indian counterpart Narendra Modi in Lumbini, Rupandehi district, on Monday, May 16, 2022. Photo: RSS

KATHMANDU: The governments of Nepal and India signed a memorandum of understanding (MoU) for the construction of the identified 490.2 megawatts (MW) Arun-4 Hydropower Project.

Executive Director of Nepal Electricity Authority (NEA), Kulman Ghising and chairperson and operation manager of the Indian hydropower company Satluj Jal Vidyut Nigam (SJVN), Nanda Lal Sharma, signed the MoU for the joint venture semi-reservoir based hydropower project between the NEA and Nigam, in the presence of Prime Minister of Nepal, Sher Bahadur Deuba and his visiting Indian counterpart Narendra Modi.

Prior to this, during PM Deuba’s India visit in the first week of April, an agreement was reached between the two countries to construct the project. NEA has a share of 49% investment and the SJVN 51% in the estimated Rs 79.1 billion project located in the upstream of the Arun-III hydropower project in Sankhuwasabha district.

Nepal will get free 21.9% electricity monthly from the project. The SJVN will initiate the management of the sales of produced electricity and budget for the project. Nepal has reserved the right to purchase electricity generated from the project if it can afford to consume it. Only then, power generated from the project will be sold elsewhere to India or Bangladesh.

The project has a capacity of generating 2.1 billion units of electricity annually.



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