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  • Home
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  • DAILY CURRENT AFFAIRS:NHPC to develop Nepal hydropower plant left by Chinese Company

NHPC to develop Nepal hydropower plant left by Chinese Company

Tags: Economy/Finance International News

The Government of Nepal has signed an agreement with the NHPC ltd to develop a hydroelectric plant after a Chinese company backed out of the project.

A Memorandum of Understanding (MoU) was signed between the Investment Board Nepal (IBN), Government of Nepal and NHPC ltd. 

Project 

  • Under the MoU NHPC will study details like feasibility, environmental impact, inundation of land and construction costs for two projects - West Seti (750 megawatts) and SR 6 (450 megawatts).
  • The Chairman cum Managing Director (CMD) of NHPC said that it will be investing around Rs 18,000 crore in the project.
  • Both the projects are on the West Seti River.
  • Earlier Nepal cancelled its deal with the Chinese biggest hydropower company, Three Gorges International Corp in 2017.

Indian company, Sutlej Jal Vidyut Nigam (SJVN) is already constructing a 900 MW hydropower project on the Arun River in east Nepal at a cost $1.04 billion.

Hydro potential in Nepal 

  • Currently Nepal generates about 2,000 megawatts, or less than 5% of its total hydroelectric potential, due to a lack of funds, technical know-how and the absence of political consensus on how to develop the resource.
  • Nepal has opened its rivers, which it sees as having a combined potential to generate more than 42,000 megawatts of hydroelectric power, to foreign players to develop its economy and export electricity to countries like India so as to narrow the trade deficit of more than $13 billion.

 

NHPC

  • It was earlier called the National Hydroelectric Power Corporation. 
  • It was set up by the Government of India in 1975.
  • It is the largest organisation for hydropower development in India.
  • The company is now also engaged in the business of solar and wind power. 
  • NHPC Limited presently has an installation base of 7071.2 MW from 24 power stations.
  • NHPC is presently engaged in the construction of 11 projects aggregating to a total installed capacity of 7539 MW.
  • Headquarters: Faridabad, Haryana.

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