New Delhi: India and Nepal signed a Memorandum of Understanding (MoU) in New Delhi today for the development of the Phukot Karnali Hydro-Electric Project (480MW) in Nepal.

The MoU was signed in the presence of Prime Minister of India Narendra Modi and Prime Minister of Nepal Pushpa Kamal Dahal 'Prachanda' at Hyderabad House in New Delhi.

"NHPC Limited (A Govt. of India Enterprise) and Vidhyut Utpadan Company Limited (VUCL), Nepal signed an MoU (Memorandum of Understanding) in New Delhi today for the development of Phukot Karnali Hydro Electric Project (480MW) in Nepal," the Ministry of Power said in an official statement.

RK Vishnoi, CMD, NHPC and Surya Prasad Rijal, MD, VUCL, Nepal exchanging MOU documents for the development of Phukot Karnali Hydro Electric Project in the presence of PM Narendra Modi and his Nepalese counterpart Pushpa Kamal Dahal 'Prachanda' in the national capital.

"NHPC Limited, a Schedule 'A' Enterprise of the Government of India with 'MINI RATNA' status, is a premier PSU in India for the development of hydropower and Vidhyut Utpadan Company Limited (VUCL), Nepal is responsible to develop, build, own and operate large-scale hydropower projects in a public-private partnership model in Nepal," the official release read.

RK Vishnoi, Chairman and Managing Director of NHPC, and Surya Prasad Rijal, Managing Director of VUCL, signed the MOU. The signing of this MOU represents a watershed moment in the India-Nepal Joint Vision for Power Sector Cooperation.

The project will, notably use the flow from the Karnali River for power generation and the generated power will be fed into the integrated power system of Nepal.

The installed capacity of the project shall be 480 MW with an average annual generation of about 2448 GWh.

The key features of the project are a 109-metre-high RCC dam and an underground powerhouse where the 06 turbines of 79 MW each shall be housed. Additionally, to utilize minimum environmental release one Surface Power House of 6 MW capacity i.e. two machines of 3 MW each is also planned, the press release added.

Earlier today, in a special press briefing on the visit of Nepal PM Pushpa Kamal Dahal 'Prachanda' to India, Foreign Secretary Vinay Kwatra said, "The two leaders engaged in fairly comprehensive, constructive and future-oriented discussions directed towards taking the India-Nepal bilateral relationship forward in a constructive, progressive and beneficial manner for both our societies."

Speaking on the signing of MoUs and other agreements, Kwatra stated that an MoU was signed for the development of the 480 MW Phukot Karnali hydropower project in Western Nepal by NHPC India.

"As regards our generation, an MoU was signed for the development of 480 MW Phukot Karnali hydropower project in Western Nepal by NHPC India. Further, the signing of the project development agreement for the 679 megawatt Lower Arun Project by India's Satluj Jal Vidyut Nigam (SJVN) was welcomed by the two Prime Ministers," the Foreign Secretary said, addressing the media after India-Nepal bilateral talks.

The investment proposal from SJVN worth 92.68 billion Nepali Rupees was given approval in the 53rd meeting of the Investment Board chaired by Nepal's Prime Minister Pushpa Kamal Dahal in April this year.

During the meeting, both Prime Ministers also expressed their commitment to achieving tangible and time-bound progress on Pancheshwar Multipurpose Project, the Foreign Secretary added.