India, Nepal to set up 400-Kv circuit link

Of the total investment, Rs 153 crore is the Indian investment in the project while Rs 85 crore is the Nepalese investment.

The Indian SPV has been set up as a consortium with IL038;FS, Sutlej Jal Vidyut Nigam SJVN 26 per cent Power Trading Corporation 11 per cent and Power Grid Corporation 26 per cent as stakeholders. On the Nepal side, Nepal Electricity Authority has a 50 per cent stake in the SPV, IL038;FS has 26 per cent and banks and financial institutions have the balance 24 per cent stake in the venture.

Currently, India exports about 60 MW of electricity to Nepal which is expected to go up to 250 MW in the next 4-5 years.

8220;However, with the SJVN setting up a 402-MW plant called Arun-III in Nepal it will become a net importer of electricity to India by 2017,8221; minister of state for power Jairam Ramesh said. Nepal could export as much as 700-800 MW of power to India by 2017.