GMR Energy Limited of India has pocketed a 300 MW Upper Karnali hydro-power project in Nepal.
The company has signed up a deal with the Nepalese government to finish the project by next four and a half years.
As part of the deal, the GMR company will provide about 12 percent free electricity and 27 percent free equity in the project to Nepal.
The company has also agreed to give $2,500 US per MW to the Nepalese government for the project survey and deposit $12,500 US per MW before commencing construction.
According to earlier estimates by Nepal Electricity Authority (NEA), the cost of building Upper Karnali project is around $ 468.6 million.
The company was chosen as it meets up all the governmental demands. A government group headed by a joint secretary at the Water Resource Ministry Anup Kumar Upadhyaya had talked all terms and conditions with the company.
Shortly, the same group will hold talks with another Indian company named Sutlej about the construction of the Arun III project.
Previously, the cabinet had permitted the Ministry to hold discussions with specified companies to award the Upper Karnali and Arun III hydropower projects.