The permit comes on the heels of an environmental clearance issued by the Indian Ministry of Environment, Forests and Climate Change in December last year for the company’s three hydroelectric projects totaling 571MW in the country.
The company owns a 70% stake in the consortium of the Meureubo 2 hydropower project, while PT-PJB, a fully-owned subsidiary of national utility PT-PLN, owns a 25% stake.
The remainder 5% of the consortium is owned by Velcan’s local partner for the project, PT-PPC.
PT Aceh Hydro Power was set up as the special purpose vehicle for Meureubo 2 in 2011.
Velcan co-CEOs Jean-Luc Rivoire and Antoine Decitre said: "This approval is another important milestone for Velcan in Indonesia. It reflects five years of determined work by Velcan.
"Our Indonesian team in particular, both in Jakarta and in Aceh has nurtured a constructive and positive relationship with all the relevant authorities and stakeholders.
"We would like to thank the many organizations, former and present Velcan team members, engineering companies, local and national authorities, local population representatives and individuals who have been involved in this process."
The permit, which is a prerequisite for obtaining the forest land use permit, is an important step towards the completion of all the necessary procedures for Velcan’s flagship project in Indonesia.
With offices in Luxemburg, Singapore, New Delhi, Jakarta and Saõ Paulo, Velcan is currently focusing on India, Brazil and Indonesia for its investments.
As of February this year, Velcan has built and operates its first hydroelectric concession in Brazil with a capacity of 15MW.
The company has also begun construction on Suka Rame, a 7MW run-of-the-river hydroelectric plant in Sumatera.
