SJVN : Signs MoU for 900 MW Arun 3 Hydro Electric Project (Nepal) with Consortium Led by State Bank of India.

SJVN is executing 900 MW Arun 3 Hydro Electric Project, through its wholly owned subsidiary SJVN Arun 3 Power Development Company (SAPDC). The project was awarded to SJVN Limited on build-own-operate-transfer (BOOT) basis for a period of 30 years. The total project cost is likely to be INR 7018 crores (NPR 11,229 crores), which includes both generation and transmission part.

Sh. Nand Lal Sharma, Chairman & Managing Director, SJVN informed that the Project shall be financed on 70: 30 debt equity ratio. Accordingly SJVN will contribute INR 2105 crores (NPR 3369 crores) as equity while INR 4913 crores (NPR 7860 Crores) will be the debt portion. With present net worth of more than INR 10,000 crores and cash reserves of around INR 2,900 crores SJVN has sufficient financial backing to provide for the equity part. He further asserted that, with India's Largest Hydro Power Station in its kitty, SJVN has proven expertise of technically executing large Hydro Power Projects, with major underground components, in typical and challenging Himalayan Geology.

Sh. Sharma further told that for the debt part of financing SJVN has entered into an MoU with a consortium of Banks led by State Bank of India. The other constituents of consortium are Everest Bank Limited and NABIL Bank Limited. The consortium will provide a total term loan of INR 4913 crores (NPR 7860 Crores) in which State Bank of India will be providing INR 4100 crores (NPR 6560 Crores) the rest will be provided by Everest Bank limited and NABIL Bank Limited.

The MoU was signed in the august presence of Hon'ble Ex- Prime Minister of Nepal Sh. Pushpa Kamal Dahal, Hon'ble Finance Minister of Nepal Dr. Yuba Raj Khatiwada, Chairman & Managing Director, SJVN Sh. Nand Lal Sharma & Deputy Managing Director of State Bank of India, Sh. P.N. Prasad. While Sh. Satish Sharma CEO SJVN Arun 3 Power Development Company (SAPDC) signed the agreement on behalf of SJVN Limited.

On this occasion Sh. A.S. Bindra, Director (Finance), Sh. Kanwar Singh, Director (Civil), Smt. Geeta Kapoor, Director (Personnel) along with other senior officers from SJVN and SAPDC were also present.