The project is planned to be developed on the Arun River by Nepal Investment Board and India’s Staluj Vidyut Nigam.
The contract will be signed during Indian Prime Minister Narendra Modi’s visit to Nepal for the 18th SAARC Summit, reports Business Standard.
As part of the proposed deal, state-owned power company SJVN will deliver 21.9% of the generated power from the project to the Nepal government free of charge.
SJVN will also distribute parts of its share capital among the local people.
The company will also make arrangements to resettle and rehabilitate around 300 families from the project site, reports the publication.
Additionally, SJVN would construct other infrastructures such as roads, bridges, a hospital and schools in the region as part of the corporate social responsibility.
Business Standard quoted NIB external affairs head Ghanashyam Ojha as saying that the draft copy is being sent to SJVN for final approval.
The project is expected to involve $1.5bn of foreign direct investment, which will create job opportunities for thousands of local residents.
