SBI to invest Rs 80 bn in hydropower project

The State Bank of India (SBI) will be investing a total of Rs 80 billion in the Arun III hydropower project of Nepal, which has 900 megawatts (MW) electricity production capacities. The SJVN, which has been awarded with the construction of the mega power project of Nepal, has made an informal agreement with the SBI to acquire the investment as loan and soon will make the formal agreement, sources informed ANI.

"The Director Committee Meeting of the bank is due to make the recommendation. They soon will decide over. As of now they have decided over the loan extend and the interest rate over it has been finalized," the source informed with anonymity.

"The 1.4 trillion rupees over the project will be expended for the construction of the structures and additional 11 billion rupees for the transmission lines," the source briefed.With the completion of the project, Nepal will get 21.9 percent of the total electricity produced in a year i.e., 197 MW electricity with 86 crore unit for free in a year.

Along with this, the Punjab National Bank will lend the loan for the construction of the 268 km long 400 KV transmission line via the Everest Bank which is the joint venture bank of the PNB.

"The Everest Bank Limited also will invest 3.60 Billion Rupees (2.25 Billion INR) in the Arun III," the source added.

Along with the Everest Bank will be made with investment from the EBL and the investment of the PNB in the project also will stand at eight billion rupees (5 Billion INR).

The source also informed that the 4.06 billion rupees for the project will be lent from the Nepali banks as Bridge loan without further details over the banks.

With the finalisation of the investment and preliminary frame work prepared the Investment Board of Nepal will soon issue the license for the project.