IREDA Invests in 900 MW Hydroelectric Project in Nepal
The Indian Renewable Energy Development Agency Limited (IREDA) has announced a strategic investment in a 900 MW hydroelectric power project in Nepal. This investment, amounting to approximately Rs 290 Crore, will secure IREDA up to a 10 per cent shareholding in GMR Upper Karnali Hydro Power Limited and Karnali Transmission Company Pvt. Ltd., both based in Nepal.
This strategic initiative, in partnership with SJVN Limited, aims to facilitate the establishment of the 900 MW Upper Karnali Hydro-Electric Power Project in Nepal. The project’s advancement is contingent upon approvals from the Government of India and other regulatory bodies. The IREDA Board of Directors granted in-principle approval for this equity investment during their meeting yesterday.
Pradip Kumar Das, Chairman & Managing Director of IREDA, stated, “This strategic investment reflects our dedication to expanding renewable energy infrastructure and promoting international collaboration in the sector.” He added, “The 900 MW project is a crucial step in tapping into Nepal’s hydropower potential, thereby enhancing regional energy security and fostering sustainable development.”
Currently, GMR and the Nepal Electricity Authority, Government of Nepal, are the main shareholders in M/s. GMR Upper Karnali Hydro Power Limited. The addition of IREDA and SJVN Limited to the project emphasizes a strong regional partnership aimed at boosting renewable energy capacity and achieving energy independence.
Doubts Revealed
IREDA -: IREDA stands for Indian Renewable Energy Development Agency Limited. It is a company that helps in developing renewable energy projects in India.
900 MW -: 900 MW means 900 Megawatts. It is a unit to measure how much electricity a power plant can produce. 1 Megawatt is equal to 1 million watts.
Hydroelectric Project -: A hydroelectric project uses water to produce electricity. Water flows through turbines, which spin and generate electricity.
Nepal -: Nepal is a country located to the north of India. It is known for its mountains, including Mount Everest.
Rs 290 Crore -: Rs 290 Crore means 290 Crore Rupees. A Crore is a unit in the Indian numbering system equal to 10 million. So, 290 Crore is 2.9 billion Rupees.
GMR Upper Karnali Hydro Power Limited -: GMR Upper Karnali Hydro Power Limited is a company that is working on the hydroelectric project in Nepal. It is part of the GMR Group, which is an Indian company.
Karnali Transmission Company Pvt. Ltd. -: Karnali Transmission Company Pvt. Ltd. is another company involved in the project. It helps in transmitting the electricity generated by the hydroelectric project.
SJVN Limited -: SJVN Limited is an Indian company that works on power projects, including hydroelectric projects. It is partnering with IREDA for this project.
Regional energy security -: Regional energy security means making sure that a region, like South Asia, has enough energy to meet its needs without depending too much on other places.
Sustainable development -: Sustainable development means developing in a way that meets our needs without harming the environment or using up resources for future generations.
Government of India -: The Government of India is the central government that runs the country. It needs to approve big projects like this one to make sure they are good for the country.
Regulatory bodies -: Regulatory bodies are organizations that make sure companies follow the rules and laws. They need to approve projects to ensure they are safe and legal.