Recently, the Nepal cabinet had given approval to the project following which the PDA has been signed.
The company secured contract for the Upper Karnali project through an International competitive bidding process in 2008 on BOOT basis.
Scheduled to be constructed in a period of about five years, the project will generate power which will be evacuated through a 400kV double circuit transmission line up to the interconnection point of Power Grid Corporation of India (PGCIL), in India.
GMR Group group chairman Rao said: "The signing of the Project Development Agreement for the Upper Karnali Hydro Power Project reinforces the strong ties between India and Nepal.
"The development of the Upper Karnali project will be a beneficial for both countries leveraging on each other’s strengths and resources."
Scheduled to commence commercial operation by September 2021, the project will generate about 3500MUs of energy per annum and 420MUs of energy (12% of installed capacity) has been earmarked as free power to Nepal.
The Nepal Electricity Authority will hold 27% free equity stake in the project and the Government of Nepal will secure 100% ownership of the project at the end of the 25 year concession period.
