KATHMANDU, Nov 6:
India and Nepal have agreed to a draft of the second Project Development Agreement (PDA) aimed to generate hydroelectric power in the Himalayan nation and the agreement may be signed during Prime Minister Narendra Modi’s visit here this month.
Both the sides agreed to the 900 MW Arun III project on Arun river yesterday, at the end of a two day meeting held here between Nepal Investment Board (NIB) and Staluj Vidyut Nigam.
Radhesh Pant, chief executive officer of NIB and R K Agrawal, executive director of Satluj led their respective teams during the meeting, sources said.
The PDA is expected to be signed between Nepalese and Indian officials towards November end when Prime Minister Narendra Modi will arrive in Nepal to attend the 18th SAARC Summit.
Under the proposed PDA, the Indian power company would provide 21.9 per cent electricity generated from the project free of cost to the Nepal Government.
Satluj will also allocate some share capital to the local people free of cost and provide free electricity to local households.
The Satluj has also agreed to resettle and rehabilitate some 300 families located in the project site.
The company will also build roads, bridges, a hospital and schools in the region as per its corporate social responsibility.
The draft copy is being sent to the Satluj for final approval, according to Ghanashyam Ojha, head, external affairs of NIB.
The project will bring in USD 1.5 billion foreign direct investment into Nepal and create jobs for thousands of people. (PTI)
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