State-owned IREDA has finalised a joint venture agreement with SJVN, GMR Energy and the Nepal Electricity Authority to set up a 900 megawatt hydropower project in Nepal. The agreement for the 900 MW Upper Karnali hydro-electric project was formalised in New Delhi on Thursday, in the presence of senior officials from IREDA, SJVN, and GMR Energy.

In a statement on Thursday, IREDA said, "It has finalised a joint venture agreement with SJVN Ltd, GMR Energy Ltd, and Nepal Electricity Authority (NEA) for the development of the 900 MW Upper Karnali hydro-electric project in Nepal. This strategic initiative aims to strengthen regional energy security and accelerate renewable energy growth."

The joint venture agreement lays out a comprehensive framework for project development, construction, operation, and maintenance under a Build-Own-Operate-Transfer (BOOT) model, with a 25-year project term from the Commercial Operation Date (CoD).

IREDA CMD Pradip Kumar Das said, "This agreement marks a significant step towards realising our collective vision of sustainable energy development in the region. By leveraging hydropower's vast potential, the Upper Karnali project will serve as a model of cross-border collaboration, delivering both economic and environmental benefits."

Under the administrative control of the Ministry of New and Renewable Energy (MNRE), Indian Renewable Energy Development Agency Ltd (IREDA) is a non-banking financial institution engaged in promoting, developing and extending financial assistance for setting up projects relating to new and renewable sources of energy and energy efficiency/conservation.