4,000 MW hydel project in offing

KATHMANDU, Oct 30: Tata Power, India´s largest integrated private power utility, and SN Power, Norway´s international renewable energy company, signed an agreement to develop joint hydropower projects in India and Nepal, a press release issued by SN Power Nepal office said on Friday. This is the first time that Tata Power has entered into an exclusive partnership with another hydropower company. [break]



The two companies aim to produce 2,000 MW under construction or in operation by 2015, and a total of 4,000 MW by 2020. They have already begun pursuing potential project opportunity based on the vast reserves of renewable energy in the Himalayas, the country director of SN Power, Dr Sandip Shah, said.



The business model for the partnership is to develop projects that will meet the increasing energy demand in India and Nepal through the provision of clean energy. The partners will also establish a jointly-owned Services Company in India. They are also considering to co-develop Nepal´s Tamakoshi 3 project to which SN Power holds license rights.



Each project will be developed through a Special Purpose Vehicle (SPV) structure. For SPVs in Nepal, SN Power will hold 50% of the total issued and paid up capital of the SPV plus one equity share. For SPVs in India, Tata Power will hold 50% of the total issued and paid up capital of the SPV plus one equity share.

Related story

Future of about 4000 students uncertain after Lalitpur metropol...