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SBI to invest Rs 80 bn in hydropower project of Nepal

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KATHMANDU — 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.

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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.

“The Nepal Investment Board will soon issue the license for the construction of the project. It will not take more than a month meaning the license will be granted by mid-June as of now,” another source in the Nepal Investment Board told ANI.

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The Indian Government on the other hand has made the approval of 92 billion rupees that is to be invested by SJVN. With this the SJVN will invest 25 billion of its own for the mega-project and will take the charge for 25 years excluding the time for the construction of infra.

The further division of the project has been made with the granting of two separate packages to two Indian companies. Under the Package One, the Jay Prakash Associates (JP) Limited of India has been awarded with the construction of the Dam and diversion with an estimated cost of about 18 billion rupees.

The Second Package of constructing the power station is awarded to Patel Engineering Company Ltd. with the contract amounting 18 billion rupees which includes the 8 km long tunnel in addition.

ANI

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NOC imposes quota system for fuel supply

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KATHMANDU — NEpal Oil Corporation has imposed a quota system in fuel after halt in fuel supply across the country due to protest from petroleum transport workers.

The NOC has asked petrol pumps to distribute five liters to two wheelers , 15 liters  to four wheelers  and 50-100 liters  to public vehicles per day.

The Federation of Nepalese National Transport Entrepreneurs Association (FNNTEA) has been protesting against the new Criminal Code for the last three days arguing that the code is against them.

They have submitted 13-point demand to the government which, among others, calls for rollback of some provisions that proposes increment in punishment for drivers for death resulting from driver’s negligence.

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As per the new Criminal Code, drivers can be sentenced to a jail term of 3 to 10 years in case of death of people in road accidents. Earlier, it was 2 to 10 years. The new code has also mandated a fine of Rs30,000 to Rs100,000 in such cases.

Normally, NOC tends to store seven days fuel backup. However, the state owned oil monopoly said that its stock had depleted because fuel has been coming from Siliguri depot only.

NOC spokesperson Birendra Kumar Goit said supplies had been affected after tanker operators refused to transport fuel.

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