India’s hydropower major Satluj Jal Vidyut Nigam (SJVN) has signed papers to get a INR63.33 billion (around Rs101 billion) loan from a consortium of Nepali and Indian banks to fund its Arun-3 hydropower project in the eastern Nepal.

"SJVN Arun-3 Power Development Company, a subsidiary of SJVN Ltd in Nepal signed term loan documents with the consortium of banks from India and Nepal," the company said in a statement last week. The papers were signed on February 22.

The consortium, led by State Bank of India and Punjab National Bank, has Exim Bank and Canara UBI India as partners. In Nepal, Everest Bank and Nabil Bank are its consortium members, according to the statement.

SJVN Chairman and Managing Director Nand Lal Sharma reaffirmed SJVN's commitment to complete the construction of 900MW Arun-3 hydropower project in Nepal by the fiscal year 2023-24, one year ahead of the scheduled commissioning of the project in February 2025, as required under Project Development Agreement and Financing Documents, according to the statement.

SJVN is implementing the Arun-3 project in Nepal through its wholly-owned subsidiary SJVN Arun-3 Power Development Company.

The project, according to Sharma, is in an advanced stage of construction.

The project completion, according to Sharma, has been advanced by about a year which will immensely benefit not only SJVN but also the government of Nepal who will start getting power supply as a basic infrastructure for the industrial development of the country.

Sharma also said that as a result of trust gained by SJVN by efficient implementation of the project, Nepal has also allocated Lower Arun Hydropower Project to the company.

In July last year Nepal signed a $1.3 billion deal with SJVN to develop a 679MW Lower Arun Hydropower Project, the second mega project undertaken by the southern neighbour after the $1.04 billion 900MW Arun-3 hydroelectric project in the Arun river.

The Lower Arun project will not have any reservoir or dam and will be a tailrace development of Arun-3 hydro project, which will mean water re-enters the river for the Lower Arun project.

Currently, SJVN has a portfolio of over 16,000 megawatt (MW), with 2,016.50 MW installed capacity and the rest under various stages of development.

According to the statement, the company is set out to achieve 5,000MW by 2023, 25,000MW by 2030 and 50,000MW installed capacity by 2040.