By Sudeshna Sarkar, IANS
Kathmandu : India’s public sector hydropower company Sutlej Jal Vidyut Nigam (SJVN) is poised to become the second Indian entrant in Himalayan neighbour Nepal’s hydroelectric power sector by wrapping up a deal for a 402 MW project.
SJVN, incorporated in 1988 as a joint venture between the central and the Himachal Pradesh governments, is on the verge of signing a memorandum of understanding with Nepal’s water resources ministry to develop the Arun-III project after promising to provide power-starved Nepal over 21 percent of the energy generated free of cost.
The formal signing is expected Tuesday after SJVN authorities this week began negotiations with Nepal’s officials.
SJVN, which presently has an authorised share capital of Rs.45 million, beat eight other contenders for the project, including two Chinese companies.
Last year, a committee formed by Nepal’s government to assess the bids had evaluated India’s GMR Group as the best bidder for both Arun-III and Upper Karnali, a 309 MW project.
However, after a parliamentary committee directed the government not to award more than one project to a company at the same time and GMR wrested the Upper Karnali project, Arun-III fell on SJVN’s lap, the second best bidder.
However, should negotiations falter, Jindal Steel and Power Co and Reliance Energy Ltd are waiting in the wings.
According to initial reports, SJVN is proposing to complete the survey in two and a half years and complete construction in five years.
Faced with a mounting power crisis and an eight-hour daily power outage, Nepal’s government decided to award the projects in the pipeline to the bidders offering the most free energy.
However, even after the Arun-III deal is wrapped up, things may not run smoothly.
Though GMR bagged the Upper Karmali deal last year, it has begun to face a spate of protests from NGos and Maoist organisations.
The Maoists especially are opposed to signing any new project of national importance before the April 10 constituent assembly election and have been taking out protest rallies in the capital, condemning the awarding of the Upper Karnali project to the Indian company.