SHIMLA: 17 May, 2022 : A Memorandum of Understanding (MoU) for development of 490 MW Arun-4 Hydro Electric Project in Nepal has been signed in Lumbini, Nepal in the benign presence of Prime Minister of India Sh. Narendra Modi and Prime Minister of Nepal Sh. Sher Bahadur Deuba.
This historic MoU was signed by Shri Nand Lal Sharma Chairman & Managing Director, SJVN & Shri Kulman Ghising Managing Director, Nepal Electricity Authority (NEA). Speaking on the occasion Shri N L Sharma said that the 490 MW, Arun-4 Hydro Electric Project will be developed in Joint Venture (JV) mode by SJVN and Nepal Electricity Authority (NEA) and in this JV, SJVN will be majority stakeholder.
The construction of this project upstream of Arun-3 HEP, will be taken up by this JV, which on completion shall generate around 2100 Million Units of energy per annum. The estimated developmental cost of this Project which is situated in Sankhuwasabha District Province-1 of Nepal is INR 4900 Crores.
Shri Sharma further emphasized that the signing of this MOU is a landmark step towards achieving India-Nepal Joint Vision on Power Sector Cooperation.
Sh. Sharma further informed that, this will be the third Mega Project to be constructed in Nepal by SJVN, in addition to the already under construction 900 MW Arun-3 and 669 MW Lower Arun which is in Survey and Investigation Stage. With signing of this MoU, SJVN now has three projects of total 2059 MW portfolio, in Nepal. Shri Sharma further reiterated his resolve of SJVN targeting 5000 MW Projects in Nepal by 2030.
The advocacy of the concept of Integrated River Basin Development Approach is the brainchild of Sh. Nand Lal Sharma. Sh. Sharma had long emphasized of following this approach in various National/International forums, resulting in allocation of Hydro Projects in One Single River Basin to One Developer, in Nepal also. This approach enables optimum utilization of Manpower, Infrastructure and Financial Resources. He expressed satisfaction, that this novel concept has been accepted by Nepal Government as well as in India, by the State Governments of Himachal Pradesh & Arunachal Pradesh.
Sh. Sharma further stated that the Projects being developed by SJVN in Nepal will result in overall development and boost mutual economic growth in India & Nepal. He said that the Infrastructural Development related to project activities would ensure overall socio-economic development of the region. In addition to these three Hydro Projects in Nepal, SJVN is also constructing 217km 400 kV associated transmission system for evacuation of Power.
“With total portfolio of around 31500 MW, SJVN now has Power Projects of more than 30 GW capacity under operation & different stages of development. These recent additions of New Projects are leading the company towards actualizing of its Shared Vision of 5000 MW by 2023, 25000 MW by 2030 & 50000 MW installed capacity by 2040.” said Sh. Nand Lal Sharma.
Sh. Sharma expressed his gratitude to the Prime Ministers, Ministry of Power and Ministry of External Affairs, Indian Embassy in Nepal for reposing faith and considering SJVN the developer of Arun 4 HEP.