India and Nepal sign USD 1 billion Power Deal
India and Nepal signed an agreement to construct a USD one billion hydropower plant on Arun River. It aims to generate 900-megawatt of electricity.
- India’s state-owned Satluj Jal Vidyut Nigam will construct the mega power plant.
- It will start generation of power by 2021.
- Nepal will receive around 22 per cent of the power generated from the plant free.
- This project will help to meet some part of Nepal’s power demand as it is grappling with severe power shortage.
Thus by signing this agreement shows that India is has great interest in exploiting the abundant untapped hydropower resources of Nepal as it has vast network of fast-flowing rivers.