KATHMANDU: Financial Closure (FC) and Power Sale Agreement(PSA) will be finalized within two years for the 900 Mw Upper Karnali hydropower project stated by the project developer company. A meeting of the Council of ministers held on 31st July has extended the timeline for FC and PSA for the project by two more years. GMR Upper Karnali Hydropower Ltd is the developer of the project, which is being implemented in the Surkhet, Dailekh, and Achham districts. Srinivas Bomidala, President of GMR Group for Energy and International Airports, expressed its commitment to completing the PSA and FC will be completed within the stipulated time stating that preparation is going to complete PSA and FC.
“In order to sell 500 MW, the PSA has been initialized between the Bangladesh PowerDevelopment Board, NTPC Vidyut Vyar Nigam (NVVN), and our company,” he said, “We are ready to sign PSA and FC within the two-year period of additional time extended by the government.”
Nepal will get free energy equivalent to 108 MW from the project, which has also provided 27 percent free equity to the Nepal government. The developer company has started discussions with concerned officials to sell the remaining electricity to India or Bangladesh. GMR Ltd signed a Project Development Agreement (PDA) with the Nepal government in 2014 September to implement the project. The initial PSA has also been concluded with Bangladesh at 7.7172 cents per unit, i.e., about 8.48 rupees in Nepalese rupees, including whiling charge, leakage, and trading margin.