Minister for Forests and Environment Pradeep Yadav has said that his ministry will facilitate in the speedy construction of the 900 megawatts Arun –III project, a project of national priority. The project is based at Makalu rural municipality in Sankhuwasabha district in east Nepal. Minister Yadav said so during a field visit of the project on Tuesday. He said that the project will contribute immensely for propping up the national economy and he was determined for the timely completion of the project.
“The construction of the Arun-III project will help shore up the national economy. The Ministry of Forests and Environment and myself are ready to extend any needed support to complete this project,” he reiterated.
The Forests and Environment Minister said he is serious to the complaints that the project was facing some problems carrying out its works as some files related to it are under consideration of his ministry and expressed commitment that the project would be given a go-ahead after studying these files.
He believed that the Nepal-India relations would be further deepened with the success of this project, besides making huge contribution to the national economy. A team from the Ministry, including Minister Yadav and Secretary Dr Pem Narayan Kadel on the occasion took stock of the project’s progress so far. The team had taken stock of the issues faced at the construction sites from the Project officials. Minister Yadav commented that the Project could accomplish a lot in a short time.
India’s Sutlej Jal Vidyut Nigam (SJVN) is constructing the Project estimated to cost Rs 104 billion. The 900-megawatt hydropower project will provide 21.9 per cent (197.1 megawatt) electricity to Nepal for free of cost, as per the Project Development Agreement (PDA). Upon the completion of the Project, the government of Nepal should pay Rs 4.5 billion in lump sum to the Project for Rs 5 million per megawatt of electricity.
Once the commercial production of electricity begins, the Project is entitled to cent per cent tax exemption upto 10 years and Rs 50 per cent tax exemption for additional five years, as per the PDA.Furthermore, the raw materials such as cement, rod and steel related materials to be imported for the Project will get 50 per cent exemption in custom.
The project is expected to be completed by five years and will be handed over to Nepal in 25 years from production of electricity.
