India, Nepal ink $ one billion hydro-power plant deal

Photo: The Yale Globalist

[Editor: The government of India is drawing up an action plan to increase power generation in the country and the supply of the same at affordable price. The Government on Wednesday took stock of the power situation in the country, including the fuel supply and pricing issues affecting the power sector. “We are working proactively and drawing up an action plan to increase power generation. We have looked at all options, including what needs to be done with the stranded gas-based power plants,” said Piyush Goyal, Minister of State (Independent Charge) for Power, Coal and New and Renewable Energy. Hence, stay invested in power and construction companies]
KATHMANDU, Nov 25, 2014: India and Nepal today inked an agreement to construct a $ one billion hydropower plant on Arun river to generate 900-megawatt of electricity in the power starved Himalayan nation.

Under the pact, India's state-owned Satluj Jal Vidyut Nigam will construct the mega power plant which will start generation of power by 2021.

Nepal, which has been grappling with severe power shortage, will receive around 22 per cent of the power generated from the plant free.

Nepal has a huge hydropower resources and India has been showing great interest in exploiting the untapped resources.

Calling for greater cooperation in diverse areas, Prime Minister Narendra Modi, who arrived here to attend the SAARC summit beginning tomorrow, said, "When we trust each other, we can move forward very quickly."

"While earlier, the implementation of decisions used to take 10 years, now it happens in brief time. I feel very satisfied," Modi said, inaugurating a trauma centre.

Courtesy: The Economic Times