IREDA finalises JV with SJVN, GMR Energy, NEA for 900 MW hydropower project in Nepal

The Indian Renewable Energy Development Agency (IREDA) has finalised a joint venture (JV) agreement with SJVN Ltd., GMR Energy Ltd., and Nepal Electricity Authority (NEA) to develop the 900 MW Upper Karnali Hydropower Project in Nepal.

State-owned IREDA will hold a 5% equity stake in the project, investing approximately ₹174.22 crore.

The Department of Investment and Public Asset Management (DIPAM) has approved the equity investment on the recommendation of the Ministry of New and Renewable Energy.

The joint venture agreement lays out a comprehensive framework for project development, construction, operation, and maintenance under a Build-Own-Operate-Transfer (BOOT) model, with a 25-year project term from the Commercial Operation Date (CoD).

In a statement on Friday, IREDA said, "It has finalised a joint venture agreement with SJVN Ltd, GMR Energy Ltd, and Nepal Electricity Authority (NEA) for the development of the 900 MW Upper Karnali hydro-electric project in Nepal. This strategic initiative aims to strengthen regional energy security and accelerate renewable energy growth."

NEA, an undertaking of the Government of Nepal, will receive shares free of cost as an equity partner, according to the memorandum of understanding (MoU) to establish the JV company for project development.

As part of the agreement, IREDA will have the right to nominate one director on the board of the JV company. The board will appoint a chairman and CEO from the nominees of SJVN and GMR.

IREDA CMD Pradip Kumar Das said, "This agreement marks a significant step towards realising our collective vision of sustainable energy development in the region. By leveraging hydropower's vast potential, the Upper Karnali project will serve as a model of cross-border collaboration, delivering both economic and environmental benefits."

IREDA is a non-banking financial institution engaged in promoting, developing and extending financial assistance for setting up projects relating to new and renewable sources of energy and energy efficiency/conservation.

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