Developer of Arun-III appoints CEOAs the 900 MW Arun-III hydropower project speeds up land acquisition proccess, its developer SJVN India has appointed a full-time CEO for its Nepal subsidary.
As the 900 MW Arun-III hydropower project speeds up land acquisition proccess, its developer SJVN India has appointed a full-time CEO for its Nepal subsidary.
SJVN India recently appointed Suresh Chandra Agrawal as the CEO of SJVN Arun-III Power Development Company (SAPDC) that is registered in Nepal in April 2013 as its subsidiary to execute the project. Earlier, Hari Ram Subedi was at helm of the SAPDC as country representative. The company chose a new leader of general manager level at a time when the project is entering a crutial phase.
“Considering the construction planning stage of the hydropower project, our parent company has appointed a new CEO,” said Subedi. “His appointment was effective from Arpil 1 and he is currently visiting the site of the project.” SADP is on the verge of acquiring land for the construction of the project. Hundreds of locals to be displaced by the hydropower project have agreed on a resettlement action plan put forth by SADP. On February 25, a tri-party agreement was signed by Investment Board Nepal (IBN), SJVN and the locals of Sankhuwasabha, where the project is being developed. A land seizure notice that halts the land transaction of the project site is scheduled to be published the following week, according to a government source. A compensation determination committee under the leadership of the chief district officer would then start negotiations with the locals on land valuation. SAPDC plans to complete the land acquisition process before monsoon.
On November 24, 2014, the board and SJVN India signed a project development agreement (PDA) for the 900MW Arun III hydropower project. As per the agreement, SJVN will complete the construction of the plant and start energy generation by 2020.
According to IBN, Nepal will receive Rs348 billion over 25 years from the project. SJVN will provide 21.9 percent of the energy generated free of cost, which is worth Rs155 billion, plus another Rs107 billion in royalties.
As per the PDA, the Indian company will allot shares worth Rs1.6 billion to locals, 50 percent of which will be issued within two years of the project’s launch. The rest of the shares will be issued at a later date at a premium.