Kathmandu: A memorandum of understanding has been signed between the Nepal Electricity Authority (NEA) and the Sutlej Hydropower Corporation of India for the construction of the Arun-4 Hydropower Project.
NEA Executive Director Kulman Ghising and Sutlej Chairman and Managing Director Nanda Lal Sharma signed the MoU in Lumbini on Monday in the presence of Prime Minister Sher Bahadur Deuba and Indian Prime Minister Narendra Modi.
According to the joint vision paper on energy cooperation between the two prime ministers during Prime Minister Deuba’s visit to India last April, the Arun-4 reservoir project is being taken forward with the joint investment of government-owned entities.
Nepal will get 21.9 percent free energy monthly from Arun-4 as much as from the 900 MW Arun III Hydropower Project.
Arun-4 falls in the upper coastal area of the Arun III Hydropower Project being constructed by Sutlej Hydropower Corporation.
NEA will own 49 percent and Sutlej 51 percent shares in the project.
The project falls in the intermediate zone of Sankhuwasabha’s Makalu Barun National Park. The estimated cost of the project is around Rs. 79.12 billion.