Power producer SJVN has tied up finance for its 900 MW hydropower project, which will cost around Rs 11,000 crore Nepalese rupees (INR 6,880 crore), a release said on Thursday.
Representatives of SJVN Ltd signed agreements with banks during a ceremony here, the company release said.
The SJVN Arun3 Power Development Company (SAPDC) will invest NPR 11,000 crore in the next five years, it said.
The Memorandum of Understanding for the execution of the project was signed with Government of Nepal on (BOOT) Build Operate Own and Transfer basis in March 2008.
The SAPDC Pvt. Ltd. was accordingly incorporated and registered on April 25, 2013 as a private limited company under the Nepalese Companies Act. The Project Development Agreement for the execution of the project was signed between SAPDC and the Investment Board of Nepal under Government of Nepal on November 25, 2014, according to the press release.
The project was started by laying foundation stone jointly Prime Minister of India Narendra Modi and Prime Minister of Nepal KP Oli on May 2018. "As on the date the construction work on all fronts is going on in full swing round the clock," informed N.L. Sharma, chairman and managing director of the SJNV Ltd.
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Five Indian banks and two Nepalese banks are involved in providing finance for the project. SBI, EXIM, PNB, CANARA and UBI are from India while Everest Bank and Nabil Bank are from Nepal.
Nepal government will get 21.9 per cent free electricity supply from the project after the construction is over. The project will be handed over to Nepal 25 years after its completion. Nepal government will get a total of NPR 33,866 crore financial benefits from the project within the period of 25 years before handing over to Nepal by the SAPDC.
The project is aimed at exporting electricity to India after its completion.