Kathmandu, May 16. The governments of Nepal and India have signed a bilateral memorandum of understanding for the construction of the 490.2 megawatt Arun-4 hydropower project.

Executive Director of Nepal Electricity Authority (NEA), Kulman Ghising and chairperson and operation manager of the Indian hydropower company Satluj Jal Vidyut Nigam, Nanda Lal Sharma signed the MoU for the joint venture semi-reservoir based hydropower project. The deal was signed in presence of both the countries’ prime ministers.

Further, the estimated Rs 79.1 billion project is located upstream of the Arun-III hydropower project in Sankhuwasabha district. It has a 49 percent NEA investment and a 51 percent Nigam investment. Additionally, the project will provide Nepal with 21.9 percent free electricity each month.

The project has capacity of generating 2.1 billion units of electricity annually. The Nigam will initiate the budget and management of the project. Nepal has reserved right to purchase electricity from the project if it can consume it.

PM Deuba signed an agreement during his visit to India during April for construction of the project.

Indian PM Modi offers worship at Mayadevi Temple

Indian PM Modi offered his worship at Mayadevi Temple in Lumbini today. He arrived in Lumbini today upon the invitation of PM Deuba. PM Deuba and his wife also offered worship in the temple.

Further, Deuba and his counterpart jointly laid the foundation stone for the India International Buddhist Culture and Heritage Centre. It is to be constructed on a plot of land at the local International Buddhist Monastic Zone provided by the Government of Nepal. They further unveiled the stone inscription kept there.