Nepal has decided to allow IndiasSatluj Jal Vidyut Nigam(SJVN) Limited to develop a second hydropower project in the country. At present SJVN is developing a 900-MW Arun -III hydroelectric project, a run-of-river located on the Arun River in Eastern Nepal, scheduled to be completed in 2024. A meeting of theInvestment Board Nepal(IBN) chaired by Prime Minister Pushpa Kamal Dahal aka Prachanda approved the draft project development agreement (PDA) to be signed with Indias state-owned SJVN to develop the 669-megawatt (MW) Lower Arun Hydropower project in eastern Nepal.

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The decision for development comes days before Prime Minister Prachanda visited India.

The draft needs to be endorsed by the Council of Ministers before it gets implemented. The previous meeting of the IBN had approved a Rs 92.68 billion for the development of the project.