Mumbai: GMR Infrastructure on Thursday said a consortium led by its wholly owned subsidiary, GMR Energy, has secured a contract from the Nepal government to develop a 300MW hydroelectric project in that country.
Power from the 300MW Upper Karnali project is also expected to be exported to the northern grid of India.
The consortium consisting of GMR Group companies and Italian-Thai Development Project Co. of Thailand would set up the project on build, own, operate and transfer basis, GMR Infrastructure said in a filing with the Bombay Stock Exchange.
A memorandum of understanding was signed in Kathmandu between the companies involved and the government of Nepal, GMR Infrastructure said in the filing.
As per the memorandum of understanding, the developers would provide 12% free energy to Nepal and a 27% equity in a company, formed specifically for the project, to the Nepal Electricity Authority.
The project will help augment the energy requirements of the northern grid in a cost effective and energy efficient manner, GMR Infrastructure chairman, energy and agri business, B.V.N. Rao said.
GMR won the project in a bidding process spread over 12 months, it said.