Shimla : State run power company Sutlej Jal Vidyut Nigam Limited (SJVNL) is close to signing an agreement for the construction of the 900 MW Arun-III hydro electric project in Nepal . The project will cost Rs 5140 crore .
Sources said as the project has just been registered with the Company Registrar of Nepal. Now the agreement to build the project could be signed between SJVNL and Nepal in the next few months.
The SJVNL had been allotted the project after the Nepalese government invited global tenders . The PSU offered to provide almost 22 per cent free power to Nepal.
In view of the political instability in Nepal SJVNL wants to protect its investment . The power company wants clauses providing compensation and exemptions in such a situation .
The power project is proposed to be built on the Arun river which is a tributary of the Kosi .
Almost a 70 metre high concrete dam is planned and de-silting will be done by four chambers after the diverted water flows in an almost 12 km long head race tunnel .
Once completed Arun III will generate 4,033.52 million units every year . The long-term tariff will be about Rs 3.10 per unit , sources said .
SJVNL will also build a 312 km long 400 kv transmission line from the project site to India .
SJVNL is jointly owned by the Centre and the Himachal Pradesh government . The company has built and now runs India’s largest hydro power project the 1500 MW Nathpa Jhakri project in Himachal .