Sutlej expects PDA to be signed within two weeks

Indian power developer Sutlej Jal Vidyut Nigam Ltd, which is engaged in the development of Arun III hydropower project, is looking to sign project development agreement (PDA) before its survey license for the project expires on July 15. Officials of The Investment Board of Nepal (IBN) and SJVNL have are holding PDA negotiations for the past two weeks. “The negotiation is moving ahead at a satisfactory pace,” Radesh Pant, chief executive officer of the IBN said. The government had granted survey license to the SJVNL in July 2008. The export-orientated project based in Sankhuwasabha district is being developed pas per the built-own-operate and transfer (BOOT) modality. The government has given the project to SJVNL for 30 years as per the BOOT Act. The SJVNL will not have any difficulty in selling power generated by the project in India as one of its objectives is to address power deficit in India. Officials of SJVNL have said that they would export power to India even if two governments fail to sign power trade agreement (PTA). As there is no problem in market management, the PDA negotiation being held in Kathmandu is gaining momentum. “There lots of terms and conditions to be finalized. We want deal to be in national interest," Pant said. "We also want to ensure that the developer should not feel any obstacles while implementing the project." SJVNL has agreed to provide 21.9 percent of the power generated from the plant free of cost to Nepal.