Finance

IREDA investing in development of 900 MW Upper Karnali hydroelectric in Nepal

IREDA investing in development of 900 MW Upper Karnali hydroelectric in Nepal

The Indian Renewable Energy Development Agency Limited (IREDA) announced it will invest in a 900 MW hydroelectric power project in Nepal.

The about INR2.9 billion (US$34.7 million) investment will secure IREDA up to 10% shareholding in GMR Upper Karnali Hydro Power Limited and Karnali Transmission Company Pvt. Ltd., both in Nepal.

This strategic move, in collaboration with SJVN Limited, aims to support developing the 900 MW Upper Karnali Hydro-Electric Power Project in Nepal, IREDA said. The project will proceed subject to approval from the Government of India and other regulatory authorities. The Board of Directors of IREDA gave in-principle approval for this equity investment.

Upper Karnali is an ideal site because of the river bend, which provides 150 m of head without a dam in a stretch of 2 km.

“This strategic investment aligns with our commitment to expanding renewable energy infrastructure and fostering international collaboration in the sector,” said Shri Pradip Kumar Das, chairman and managing director, IREDA. “The 900 MW project is a significant step towards harnessing hydropower potential in Nepal, contributing to regional energy security and sustainable development.”

GMR and the Nepal Electricity Authority, Government of Nepal, are the existing shareholders in M/s. GMR Upper Karnali Hydro Power Limited, Nepal. The inclusion of IREDA and SJVN Limited in the project underscores a strong regional collaboration aimed at enhancing renewable energy capacity and ensuring energy independence, IREDA said.