Nepal to ink India power deal during Modi visit – Businessweek

Nepal’s government is signing an agreement Tuesday with an Indian company to build a hydroelectricity plant that will export power to India and also boost supplies in the energy starved Himalayan nation.

The inking of the deal with Indian company Satluj Jal Vidyut Nigam Ltd. to build the 900 megawatt Arun III hydropower station will coincide with Indian Prime Minister Narendra Modi‘s visit to Nepal for a South Asian regional summit.

The $1.04 billion project is expected to begin producing electricity in 2020. More than three quarters of its output will be exported to India, said Ghanashyam Ojha, external affairs official at the Investment Board Nepal.

The Arun III agreement, which was endorsed by Nepal’s Cabinet late Monday, comes just two months after a similar deal with another Indian company.

They are the two biggest private foreign investments in Nepal, and put India ahead of neighboring China, which has long shown interest in developing Nepal’s power industry.

In September, Nepal signed an agreement with Indian company GMR to build the $1.15 billion Upper Karnali Hydro power plant.

via Nepal to ink India power deal during Modi visit – Businessweek.

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