Financial Closure For SJVN 900 MW Arun-3 HEP Achieved
Shimla: The Financial Closure for 900 MW Arun-3 Hydro Power Project has been achieved today. The total debt tied up with the Banks is INR 6,333.48 crores (NPR 10,134 crore) which includes INR 1420.86 Crore (NPR 2274 crore) (stand-by line of credit, if required). The debt portion of Indian Banks is INR 5374Crore (NPR 8600 Crores) and INR 960 Crores (NPR 1536 Crores) debt portion has been committed by Nepalese Banks. SAPDC management has taken a decision to use upfront equity for construction of project i.e before drawl of debt. Financial Closure is a stage of project development when all the conditions of a financing agreement are fulfilled prior to the initial availability of the funds by the financers. On this occasion, Chairman & MD, SJVN and Chairman, SAPDC Shri Nand Lal Sharma said that the company will be investing approximately INR 6959 crore (NPR 11,134 crore) in Nepal over the next five years. Total financial benefits up to handing over of project to GoN are estimated to be around INR 21,166 crore (NPR 33,866 crore). The event organized for Financial Closure was attended by Director (Electrical), Sh. R.K. Bansal, Director (Personnel), Smt. Geeta Kapur, Director (Finance), Sh. A.K. Singh, Chief General Manager, Sh. Suresh Thakur and CEO SAPDC, Sh. Arun Dhiman along with other senior officers of SJVN and SAPDC. Financial Closure for the project will ensure realization of 70% of the funding in the form of structured debt while the remaining 30% will be direct equity from SJVN. As on date, investment of around INR 875 crore (NPR 1400 crore) has already been made. He further said that the project is helping in socio-economic growth by generating employment opportunities for the locals, boosting local industries, and fostering entrepreneurship, development of infrastructure such as roads and bridges and providing financial support for healthcare facilities and community centers etc. To support local population, skill development trainings and programmes are being implemented. Shri Nand Lal Sharma expressed gratitude towards Government of Nepal especially Hon’ble Prime Minister Sh. K P Sharma Oli for his constant support and guidance. He also thanked Government of India, Indian Embassy, Investment Board of Nepal, other Ministries of Government of Nepal and Locals residing in and around Project Area for extending their co-operation and support. He further told that Arun – 3 Hydro Power Project was awarded to SJVN Limited through International Competitive Bidding by Government of Nepal. The Memorandum of Understanding (MoU) for execution of this project on BOOT basis was signed with Government of Nepal on 2nd March 2008. Accordingly, SJVN Arun-3 Power Development Company (SAPDC) Pvt. Ltd. was incorporated and registered on 25th April 2013 as a private limited company under the Nepalese Companies Act 2063.The Project Development Agreement (PDA) for the execution of the project was signed between SAPDC and Investment Board of Nepal (IBN), Government of Nepal on 25th November 2014. All major works i.e. Civil, Hydro-Mechanical and Electro-Mechanical works of the Project were awarded by April 2018. The foundation stone for the project was jointly laid by the Hon’ble Prime Minister of India and Hon’ble Prime Minister of Nepal on 11th May 2018. The construction activities of the project are going on in full swing. Shri Sharma further told that, SJVN has also forayed into the fields of Renewable Energy, Power Transmission and Thermal and has envisaged Internal Growth Targets of installed capacity of 5000 MW by 2023, 12000 MW by 2030 and 25000 MW by year 2040.