GMR bags power project in Nepal

http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=187541

Press Trust of India

NEW DELHI, Jan. 25: GMR Energy has outbid rival Jindal Steel and Power to bag a 300 mw hydropower project in Nepal, after the former agreed to give 12 per cent free electricity from the project to that country.

“GMR Energy has bagged the Upper Karnali project. An MoU to this effect was signed last night,” an official close to the development said.

GMR Energy, a 100 per cent subsidiary of GMR Infrastructure, was a front runner for Upper Karnali and 402 mw Arun-III project. However, it lagged behind Jindal Steel and Power after the Nepal government changed parameters for awarding the projects early this month.

While permitting foreign investment from Indian companies in the hydropower sector, Nepal had decided to award the projects to developer who offers the maximum free power to the country. It also decided to give only one project to a company.
Nepal is seeking 124 mw free power from the two projects. GMR would offer close to 36 mw free power from the 300 mw project to the Himalayan nation.

“The Nepal government was asking for 33 per cent equity in the project and has now agreed for 27 per cent,” the official said denying to divulge any financial details.
The projects were awaiting clearance from the Nepal government for quite some time. While Upper Karnali received 14 proposals, nine companies bid for Arun III.