As another major step in its global pursuits, public sector SJVN
Limited has signed
a Project Development Agreement for the implementation of 900 MW Arun-3
Hydro Electric Project with the Government of Nepal which was long awaited.
The agreement was signed at Kathmandu in the presence of Hon'ble Prime
Minister of India, Shri Narendra Modi and Hon'ble Prime Minister of Nepal Shri
Sushil Kumar Koirala by Shri R.P. Singh, Chairman & Managing Director, SJVN
Limited and Shri Radesh Pant, Chief Executive Officer, IBN, Govt. of Nepal on
November 25, 2014 a day before the 18th SAARC Summit.
The Arun-3 Hydro Electric Project will be executed by Indian SJVN Limited
through its wholly owned subsidiary SJVN Arun-3 Power development Co. Pvt.
Ltd. The project will generate 4012 MU annually through its 4 units of 225 MW
each. Some of Project features include 68 m high concrete gravity DAM,11.7 KM
long HRT of 9.5m Dia for a design discharge of 343 cumcs,149 m deep Surge
shaft and a underground power house. The evacuation of power from the
generating station will be through two nos. of 400KV circuit of 310 km length to
be connected with Indian grid at Muzaffarpur.
The Project cost is estimated at around ` 7000 Crore and will be executed with a
75:25 debt to equity ratio. The Govt. of Nepal has exempted the Project from
payment of 50% custom duty, refund of VAT @ NPR 50 Lakh per MW after COD
and exempt from payment of income tax for first 10 Years and thereafter 50% for
next five years. The project will achieve financial closure in 24 months and COD
within 60 Months thereafter. The concession term of the project is 25 Yr after
COD. 78.1 % generated power will be brought to Indian grid and estimated tariff
including transmission charge will be ` 4.95 per Unit.
SJVN was awarded the work of execution of Arun-3 Project under International
Competitive Bidding in the year 2008. SJVN has already deployed the
staff for its
execution. Detailed Project Report (DPR) of the Project is ready. The execution
of the Project was awaiting signing of Project Development Agreement; which has
now been signed.