India’s major hydropower group Satluj Jal Vidyut Nigam (SJVN) has signed documents to secure a loan of INR 63.33 billion (about Rs 101 billion) from a consortium of Nepalese and Indian banks to finance its Arun-3 hydropower project in eastern Nepal, Trend reports quoting Kathmandu Post.

“SJVN Arun-3 Power Development Company, a subsidiary of SJVN Ltd in Nepal has signed term loan documents with the consortium of Indian and Nepalese banks,” the company said in a statement last week. The papers were signed on February 22.

The consortium, led by State Bank of India and Punjab National Bank, counts Exim Bank and Canara UBI India as partners. In Nepal, Everest Bank and Nabil Bank are members of its consortium, according to the statement.

SJVN Chairman and Managing Director Nand Lal Sharma has reaffirmed SJVN’s commitment to complete the construction of the 900MW Arun-3 hydropower project in Nepal by FY 2023-24, a year ahead of commissioning. The project’s scheduled in-service in February 2025, as required by the Project Development Agreement and Funding Documents, according to the release.

SJVN implements the Arun-3 project in Nepal through its wholly owned subsidiary SJVN Arun-3 Power Development Company.

The project, according to Sharma, is at an advanced stage of construction.

Completion of the project, according to Sharma, has been brought forward by about a year which will greatly benefit not only SJVN but also the Government of Nepal which will start power supply as basic infrastructure for industrial development. from the country.

Sharma also said that due to the confidence gained by SJVN through the efficient implementation of the project, Nepal has also awarded the Lower Arun Hydropower Project to the company.