Kathmandu, September 16: India has expressed keenness to construct the 400 megawatts Lower Arun hydropower project in the Sankhuwasabha district.
Indian Minister of State for Power, RK Singh, proposed to develop this project by adopting the model of Arun III Project having the capacity of 900-MW during his recent meeting with Minister for Energy, Water Resources and Irrigation Barshaman Pun in the capital.
The agreement on Arun III states that the government will be entitled to Rs 330 billion as royalty over a period of 20 years. As per it, 21.9 percent of the energy generated by the project will be provided free of cost to Nepal
Similarly, the agreement talks about allocating shares to the locals and ensuring free energy to the affected areas. The developer is also required to hand over the ownership of the project to the government of Nepal after 20 years of commercial operation.
Currently, the Department of Electricity
Development is carrying out the
feasibility and detailed study of the Lower Arun.
The project cost is estimated at over Rs 100 billion.
