The Indian power developer Sutlej is proprosing to sell 10 per cent of the energy – available for export from mush-awaited Arun III Hydropower Project – to Nepal.
SJVN Arun III Power Development Company wrote – last week – to Investment Board Nepal (IBN) asking if the Nepal government would be willing to buy 10 per cent of the total energy available for export.
According to the project development agreement (PDA) signed between SJVN and the board, Nepal will receive 21.9 per cent of the total energy generated by the project free of cost while the developer has rights over the rest of the output. The agreement also requires the developer to offer 10 per cent of the electricity from its share to Nepal on commercial terms.
"As we have secured a market for 90 per cent of our share of the energy, we have sent a proposal to board asking if the Nepal government would be interested in buying the rest of the electricity as provisioned in the PDA,” said resident representative of SJVN in Nepal Hari Ram Subedi.
The board has forwarded Sutlej proposal to Nepal Electricity Authority (NEA), the sole buyer of electricity in the country.
The NEA – confirming that the government power utility has received the proposal – said that it will ask Sutlej to clearly mention the terms and conditions and the tariff rate. "If Sutlej quotes a reasonable rate, the NEA will purchase the electricity from Arun III," informed the NEA.
The Indian developer of the export-oriented 900 MW plant located in eastern Nepal is carrying out work on the construction site of the Arun III plant on a war footing after Nepali and Indian Prime Ministers jointly laid the foundation stone for the project remotely this May during Indian Prime Minister Narendra Modi’s Nepal visit.
According to the board, Nepal will receive Rs 348 billion over 25 years from the project. The project developer will also provide 21.9 per cent of the energy free of cost, which is worth Rs 155 billion, plus another Rs 107 billion in royalties.
SJVN Arun III Power Development Company wrote – last week – to Investment Board Nepal (IBN) asking if the Nepal government would be willing to buy 10 per cent of the total energy available for export.
According to the project development agreement (PDA) signed between SJVN and the board, Nepal will receive 21.9 per cent of the total energy generated by the project free of cost while the developer has rights over the rest of the output. The agreement also requires the developer to offer 10 per cent of the electricity from its share to Nepal on commercial terms.
"As we have secured a market for 90 per cent of our share of the energy, we have sent a proposal to board asking if the Nepal government would be interested in buying the rest of the electricity as provisioned in the PDA,” said resident representative of SJVN in Nepal Hari Ram Subedi.
The board has forwarded Sutlej proposal to Nepal Electricity Authority (NEA), the sole buyer of electricity in the country.
The NEA – confirming that the government power utility has received the proposal – said that it will ask Sutlej to clearly mention the terms and conditions and the tariff rate. "If Sutlej quotes a reasonable rate, the NEA will purchase the electricity from Arun III," informed the NEA.
The Indian developer of the export-oriented 900 MW plant located in eastern Nepal is carrying out work on the construction site of the Arun III plant on a war footing after Nepali and Indian Prime Ministers jointly laid the foundation stone for the project remotely this May during Indian Prime Minister Narendra Modi’s Nepal visit.
According to the board, Nepal will receive Rs 348 billion over 25 years from the project. The project developer will also provide 21.9 per cent of the energy free of cost, which is worth Rs 155 billion, plus another Rs 107 billion in royalties.
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