KATHMANDU: The financial closure for the Arun III hydropower project has been managed as the NABIL Bank and Everest Bank as well as five other Indian banks have pledged to invest Rs 100 in the project to be developed by India’s Sutlej Electricity Corporation.
With this, the project is now expected to take its momentum.
The Sutlej Electricity Corporation has established its subsidiary SJVN for the development of the Arun III.
The project of 900 megawatts has so far achieved 25 percent of its physical progress. It is likely to complete after three years.
According to SJVN’s Chief Executive Officer Arun Dhimal, Nepali banks would make Rs 15.36 billion in investment for the project.
A memorandum of understanding (MoU) was signed to this effect on Thursday in Kathmandu.
The formal agreement on the investment has been following the approval from Nepal Rastra Bank and the Investment Board of Nepal (IMB).
The IBN had on Wednesday given permission for the company to go ahead with the MoU.
Similarly, the State Bank of India, Union Bank of India, Punjab National Bank, Canara Bank and Exim Bank of India have also agreed to invest nearly Rs 86 billion for the project.
The SJVN has made Rs 25 billion in equity investment for the undergoing construction works of the project.
Meanwhile, the total investment of the project is estimated to exceed Rs 115 billion, including Rs 11 billion for the development of the transmission line.
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