NEW DELHI (TIP): The government on Feb 22 approved a 900 MW hydro power project to be set up in Sankhuwasabha district of Nepal at a cost of Rs 5,723.72 crore.

The decision to approve the Arun-III project was taken at a meeting of the Cabinet Committee on Economic Affairs headed by Prime Minister Narendra Modi here on Wednesday.

“The Cabinet today approved setting up of Arun-III project at an estimated cost of Rs 5,723.72 crore. The project is expected to achieve financial closure by September this year. The projected will be implemented within five years,” power minister Piyush Goyal told reporters at a briefing here.

The project is being implemented by a 100 per cent subsidiary of state-run SJVN Ltd. SJVN Ltd is joint venture between Central and Himachal Pradesh governments with shareholding of 64.46 per cent and 25.51 per cent, respectively. “Union Cabinet has approved the project and its investment. It was awaited. The project is being implemented by 100 per cent subsidiary of SJVN Ltd,” SJVN Ltd chairman and managing director RN Misra said.

The subsidiary SJVN Arun-3 Power Development Company Pvt Ltd (SAPDC) was incorporated and registered on April 25, 2013 as a private limited company under Nepal’s Companies Act.

-PTI