Shimla :As another major step in its global pursuits,Shimla based public sector SJVN has signed a project development agreement for the building of the 900 MW Arun-3 hydro electric project with the Nepal government Thursday.
The agreement was signed in Kathmandu by R.P. Singh chief SJVN and Radesh Pant, CEO IBN, Nepal government in the presence of the the prime ministers Narendra Modi and Sushil Kumar Koirala, a SJVN top official said here.
The Arun-3 project will generate 4012 MU annually through its 4 units of 225 MW each.
The evacuation of power from the generating station will be through two 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.
Nepal has exempted the project from payment of 50 per cent custom duty, refund of VAT at NPR 50 lakh per MW.
Arun 3 will achieve financial closure in 24 months and COD within 60 months . The concession term of the project is 25 years.
78.1 per cent power will be brought to the Indian grid and estimated tariff including transmission charge will be ` 4.95 per unit.
SJVN was awarded the work of execution of Arun-3 in the 2008. SJVN has already deployed staff for its execution. DPR is also ready say officials.
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 in Himachal Pradesh.
The company has already diversified in the field of wind, solar and thermal, power. It is in the process of adding 5000 MW of capacity from its ten up coming projects in Himachal , Uttarakhand, Arunachal Pradesh, Bihar, Maharashtra besides neighboring countries Nepal and Bhutan.