India’s largest bank, State Bank of India (SBI) will be investing a total of Rs 80 billion in the 900 megawatt (MW) Arun III hydropower project of Nepal.
The contract for constructing this project has been awarded to Sutlej Jal Vikas Nigam (SJVN) and SJVN has made an agreement with the SBI to acquire the investment as a loan.
Indian Government has already granted approval to SJVN to invest Rs. 92 billion in this project. This project is targeted to be completed by September 2022. On account of investment, SJVN will take the charge for 25 years excluding the time for the construction.
The further division of the project has been made with the granting of two separate packages to two Indian companies. Under the Package One, the Jay Prakash Associates (JP) Limited of India has been awarded with the construction of the Dam and diversion with an estimated cost of about 18 billion rupees.