State-run Satluj Jal Vidyut Nigam has bagged a contract to develop a 402-MW hydro power project in Nepal.
The development comes within two months of GMR Group winning a contract to set up 300-MW Upper Karnali project in Nepal.
?The contract for setting up Arun-III project has been given to SJVN. An agreement to this effect was signed yesterday in Nepal,? a source said.
SJVN agreed to offer 21.9 per cent (about 88 MW) free electricity from Arun-III project. It will also have to give a guarantee of Rs 5 lakh a unit for obtaining a power generating licence, besides Rs 1 lakh per unit for a survey licence, the source said.
The company would develop the project in five years and operate it for 30 years on build-own-operate-transfer basis.
It would also have to lay transmission lines for evacuating power from the project.
SJVN had earlier offered 4.5 per cent free electricity from Arun-III. However, it raised the quantity to 21.9 per cent after the Nepal government made free power as the main criteria for awarding the projects.
In all, nine companies including GMR Energy, Jindal Steel and Power, Reliance Energy and JP Associates were believed to be in the fray for Arun III. However, GMR did not qualify for the project as the government decided that one bidder would get only one power project.
