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Earlier in 2014, GMR and SJVN signed the Project Development Agreement (PDA) for the construction of the Upper Karnali and Arun-III hydropower projects. Over a decade, the progress in Arun-III has been significant, while Upper Karnali has remained on the backburner.

Now, the government of Nepal has brought in SJVN for the construction of the Upper Karnali Hydropower Project, which is expected to give a boost to one of the major hydropower plants in the Himalayan nation.

“SJVN has received permission to take part in the construction of the Upper Karnali Hydropower Project,” the chairman of the company, Nandalal Sharma, confirmed.

As per the official, the Upper Karnali hydropower project will now be constructed with the joint investment of SJVN and GMR, with the former taking the lead. As per the earlier agreement with GMR, the Nepal Electricity Authority (NEA) will hold a share of 27 per cent. The remaining 73 per cent of the share will be divided between the two companies, with each holding a share of 36.5 per cent.

Earlier, during the signing ceremony, Indian Home Minister Rajnath Singh had promised to build the Upper Karnali and Arun-III by the Indian Government in case both companies failed to do so. As no progress has been made on the 900 MW capacity of Upper Karnali, SJVN took over as a partner.

As per the PDA, the estimated cost for the construction of the Upper Karnali Hydroelectric Project stood at 1.16 billion Nepali rupees about a decade ago. The Government of Nepal also extended the timeframe three times for GMR to secure funding for the construction of the Upper Karnali Hydropower Project. (ANI)