Construction of India-assisted hydropower project in Nepal on fast-track

The construction of Arun-III hydropower project in Nepal’s Sankhuwasabha district is on fast-track as five Indian banks and two Nepali banks have committed to lend debts for construction of the 900 MW mega power project.

In February, Nabil Bank, which is one of the lenders for the project from Nepali side, signed a pact with India’s Satluj Jal Vidyut Nigam (SJVN), setting a record of largest ever foreign direct investment to the Himalayan nation.

Arun-III is Nepal’s largest hydro project and is being built with India’s assistance.

Anil Keshari Shah, CEO of Nabil Bank said, “This type of engagement of Nepali banks during the construction of Arun-III hydropower project will test the capability of Nepali banks as well as lend new experience in these types of big projects.”