India and Nepal have joined hands to build a 695MW (megawatt) hydropower plant in order to utilize the Himalayan nation’s abundant potential to generate clean energy to ease power shortages. India has vowed to invest billions of dollars in hydropower plants in its neighboring country.
The project, named Arun IV project, will be built on the Arun River in Nepal's east by India's Satluj Jal Vidyut Nigam (SJVN) Limited in collaboration with Nepal's state-owned Nepal Electricity Authority (NEA) owing 51% and 49% of equity respectively, NEA spokesperson Suresh Bahadur Bhattarai said.
"Nepal will get 152MW of free electricity from the plant for its consumption and the rest will be split between the two on the 51% and 49% basis," Mr. Bhattarai told Reuters without giving further details. "Cost of the project is being worked out and whatever it comes will be shared as per the above ratio."
Prime Minister Modi on his visit to Nepal also inked five other agreements with Nepal on Monday, India's Ministry of External Affairs said in a statement.
