India has again proposed to construct 400-megawatt (MW) Lower Arun Hydropower Project in Sankhuwasabha district.
The government of India has again expressed interest to construct the Lower Arun Hydropower Project in a meeting with minister for Energy, Water Resources and Irrigation Barshaman Pun in the Capital today. Indian Minister of State for Power RK Singh has proposed that the new project can be developed adopting the same model of 900-MW Arun III Project, according to a press note issued by the ministry. “The Indian government had earlier proposed to build the project when minister Pun had visited India in February.”
Singh mentioned that India has proposed to build Lower Arun as per all conditions set in Arun III. According to the agreement on Arun III, the government – apart from shares being allocated to the locals and free energy to the affected areas – will get Rs 330 billion as royalty over a period of 20 years and the project will also provide 21.9 per cent of the generated energy free of cost to Nepal. “The developer will hand over the ownership of the project to Nepal after 20 years of commercial operation.”
According to the Energy Ministry, New Delhi has also submitted a proposal to develop Lower Arun. “Nepal has said that further discussions on Lower Arun will be based on the work progress of Arun III,” the officials said, adding that construction work of 900-MW Arun III hydropower project has been completed some 25 per cent till date.
The energy minister had previously scrapped the licence granted to a Brazilian company ‘Brass Power’ for construction of Lower Arun Project according to the directive from the Commission for the Investigation of Abuse of Authority (CIAA). The company had failed to make any progress in the project in the 15 years duration after the licence was awarded to it.
The project cost for Lower Arun is estimated at over Rs 100 billion. But according to the initial study conducted by Brass Power, the installed capacity of the project can be enhanced to around 1,000 MW, if it is developed as a storage-type project. “But the Department of Electricity Development is carrying out the feasibility and detailed study of the project at present.”
The government of India has again expressed interest to construct the Lower Arun Hydropower Project in a meeting with minister for Energy, Water Resources and Irrigation Barshaman Pun in the Capital today. Indian Minister of State for Power RK Singh has proposed that the new project can be developed adopting the same model of 900-MW Arun III Project, according to a press note issued by the ministry. “The Indian government had earlier proposed to build the project when minister Pun had visited India in February.”
Singh mentioned that India has proposed to build Lower Arun as per all conditions set in Arun III. According to the agreement on Arun III, the government – apart from shares being allocated to the locals and free energy to the affected areas – will get Rs 330 billion as royalty over a period of 20 years and the project will also provide 21.9 per cent of the generated energy free of cost to Nepal. “The developer will hand over the ownership of the project to Nepal after 20 years of commercial operation.”
According to the Energy Ministry, New Delhi has also submitted a proposal to develop Lower Arun. “Nepal has said that further discussions on Lower Arun will be based on the work progress of Arun III,” the officials said, adding that construction work of 900-MW Arun III hydropower project has been completed some 25 per cent till date.
The energy minister had previously scrapped the licence granted to a Brazilian company ‘Brass Power’ for construction of Lower Arun Project according to the directive from the Commission for the Investigation of Abuse of Authority (CIAA). The company had failed to make any progress in the project in the 15 years duration after the licence was awarded to it.
The project cost for Lower Arun is estimated at over Rs 100 billion. But according to the initial study conducted by Brass Power, the installed capacity of the project can be enhanced to around 1,000 MW, if it is developed as a storage-type project. “But the Department of Electricity Development is carrying out the feasibility and detailed study of the project at present.”
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