IREDA Collaborates with SJVN, GMR, and NEA for 900 MW Upper Karnali Hydropower Project in Nepal.
Economy Business
On 17th January 2025, New Delhi-based Indian Renewable Energy Development Agency Limited (IREDA) entered into a Joint Venture (JV) Agreement with Shimla, Himachal Pradesh (HP)-based SJVN Limited (formerly Satluj Jal Vidyut Nigam), GMR Energy Limited, and Nepal Electricity Authority (NEA) to develop the 900-megawatt (MW) Upper Karnali Hydropower Project on the River Karnali, the largest hydro-electric power project in Nepal.
- The agreement was signed in the presence of senior officials from IREDA, SJVN, and GMR Energy Limited in New Delhi.
- The project will receive partial funding from the Asian Development Bank (ADB) and is expected to be completed within five years of its commencement.
- IREDA will invest Rs. 174.22 crore for a 5% stake, with SJVN also investing a similar amount to acquire up to a 10% joint stake in GMR Upper Karnali Hydro Power Ltd and Karnali Transmission Co Pvt Ltd, projects executed by GMR Nepal in partnership with SJVN.
Main Point :- (i) The joint venture agreement establishes a comprehensive framework for planning, construction, operation, and maintenance of the project under the Build-Own-Operate-Transfer (BOOT) model. The USD 1.5 billion project will operate for 25 years from its Commercial Operation Date (COD).
(ii) Out of the total power generated, Nepal will utilize only 108 MW for domestic consumption, while 792 MW will be exported to countries like India and Bangladesh, promoting renewable energy and enhancing regional energy security.
(iii) The project exemplifies cross-border collaboration by harnessing hydropower potential, offering both environmental and economic benefits.
About Indian Renewable Energy Development Agency Limited (IREDA)
CMD : Pradip Kumar Das
Headquarters : New Delhi
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