KATHMANDU, Nepal - The governments of Nepal and India have signed a bilateral memorandum of understanding for the construction of the identified 490.2-megawatt Arun-4 hydropower project.
The MoU was signed in the presence of both countries' Prime Ministers for the joint venture semi-reservoir-based hydropower project between the Nepal Electricity Authority, NEA, and the Indian hydropower company Satluj Jal Vidyut Nigam.
The NEA has invested 49 percent of the estimated Rs 79.1 billion project, located upstream of the Arun-III hydropower project in the Sankhuwasabha district.
The project will provide Nepal with free 21.9 percent electricity every month.
The project can generate 2.1 billion units of electricity per year.