Kunbang Khola Hydro completes PPA deal with NEA; 25% IPO on the cards

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Thu, Sep 20, 2018 7:07 AM on IPO/FPO News, Latest, Stock Market,

20 MW Kunbang Khola Hydro project which will be developed by Susmit Energy has completed the Power Purchase Agreement (PPA) with Nepal Electricity Authority.

The agreement was signed between chairman of Susmit Energy Pvt Ltd Mr. Sushil Pokhrel and Deputy ED of NEA Mr. Jagdesworman Singh amid a program. the PPA has been signed at Rs 8.40 for dry season and for Rs 4.80 for wet season. The power developer also informed that the project will now expedite the construction of 22 km access road from Khara of Myagdi to the project location. The project after completion will produce 115.51 GW electricity every year. the hydropower project is being constructed with Rs 3.80 arba out of which 70% has been pledged as investment from different banks.

The company as estimated to begin production of electricity from February, 2024. Moreover, the developer has also expressed its commitment to provide 10% shares to the project affected locals and 15% to general public through an IPO process.