Kathmandu: The government of Nepal on Thursday signed an agreement with India to study and develop two hydro projects in the Sudurpaschim Province.
The hydro projects–West Seti and Seti-6–totalling 1,200 MW will be developed by NHPC Ltd, a state-owned hydro development company of India.
The Investment Board Nepal and NHPC Ltd signed a memorandum of understanding in Kathmandu for the development of these two projects. Sushil Bhatta, CEO of the Investment Board Nepal and Abhay Kumar Singh, chairman and managing director of NHPC Ltd, signed the MoU on behalf of their respective organizations.
According to the Investment Board, the 750MW West Seti and 450MW Seti-6 cover four districts—Bajhang, Doti, Dadeldhura and Achham in Sudurpaschim Province.
The Indian developer has to apply for the survey license for the West Seti project within 45 days after signing the agreement, and within six months for SR-6 project, as per the MoU signed.
Addressing the signing ceremony, Prime Minister Sher Bahadur Deuba said the projects are expected to contribute to the socio-economic development of the Sudurpaschim Province in particular, and Nepal as a whole.
“The MoU that has just been signed and exchanged will serve as an important instrument in enhancing Nepal-India energy cooperation. Implementation of these projects will help expand and strengthen bilateral trade and investments,” said PM Deuba.
“During my recent visit to India, Prime Minister Narendra Modi and I agreed on a vision statement on cooperation in the power sector, underlining the need for strengthening mutually beneficial bilateral cooperation in this sector. Furthermore, during the visit of Prime Minister Modi to Lumbini, we had a productive discussion on this matter, and I invited the interested companies from India for the development of the West Seti Hydroelectric Project.”
“I am confident that our close neighbor India will increase import of surplus power from Nepal,” said PM Deuba.
The estimated cost of the two projects is USD 2.4 billion.