Chinese company sidelined to award hydropower project in Nepal to Indian company

New Delhi/Kathmandu: – It was decided in a meeting, presided over by the Nepalese Prime Minister KP Sharma Oli, to award the contract for Lower Arun Hydroelectric project to an Indian company. A few days ago, the Nepal government decided to award the contract for Arun-III Hydroelectric project to an Indian company. A Chinese company also was bidding for the project. But the Nepalese Prime Minister jolted China by awarding the contract for the project to the Indian Company, Satluj Jal Vidyut Nigam Limited (SJVN), during the investment panel meeting.

Last year, the India-Nepal relations had poorly been strained. Nepal was acting on Chinese incitement. But China betrayed Nepal by encroaching on Nepalese land. The Chinese interference in the internal Nepalese matters and politics increased significantly. There was discontent brewing in the Nepalese population against the Oli government, who tolerated the Chinese interference and danced to the Chinese tune. But after realising the encroachments, Nepal decided to restore its relations with India to the original level.

The Honorary General rank awarded to the Indian Army Chief and the Nepalese Foreign Minister’s visit, following the Nepal visit by Indian Foreign Secretary Harshvardhan Shringla indicate that the relations are returning to normal. Recently India gifted one million doses of Corona vaccine to Nepal. After that, now the report has been received that the Indian company SJVN has been awarded the contract for the Lower Arun Hydroelectric project. This is a 679 megawatts project. Hydroelectricity Investment and Development Company and the Chinese company, Power Construction of China, were jointly bidding for this project. But Nepal has delivered a message to China by selecting the Indian Company SJVN for the project. The Lower Arun Hydroelectric project will cost 100 billion Nepalese Rupees. India had expressed interest in this project in 2019.