BL reported that USD 1.25 billion hydroelectric project is coming up in Nepal, which is being promoted by an Australian engineering firm with design and building work to be carried out by a Chinese state owned firm, while primary power evacuation will be taken up by an Indian state owned company.

As per report, the 750 MW West Seti power project coming up in Nepal is being touted as a major international cooperation success story. Over 90% of 3,251 million units of electricity expected to be generated from the project, post commissioning is set to flow into India.

The PPA for the project, which would be the largest single foreign investment so far in Nepal and marks a debut of sorts for Indian firms in Nepal’s power sector, was initialed by SMEC, the Australian project sponsor and PTC India Limited.

Mr Jairam Ramesh minister of State for Commerce and Power said that “India is starving for power, while Nepal has the second largest hydropower potential in the world. It is a win to win situation for both nations as well as for Indian companies which are finally finding a foothold in Nepal’s power sector.”

A senior PTC official said that “ADB’s involvement has been crucial in bringing the many complex project elements together. While West Seti Hydro Limited a special purpose vehicle will develop the project, the Manila based Asian Development Bank is among those subscribing to the equity capital for the project.”