Nepal is signing an agreement Tuesday for an Indian company to build a $1 billion hydroelectricity plant to boost supplies in the energy-starved Himalayan nation and to export power to India, AP reported. The move comes as regional leaders, including Indian Prime Minister Narendra Modi, are arriving in Nepal for a summit of South Asian Association for Regional Cooperation. The inking of the deal with Indian company Satluj Jal Vidyut Nigam Ltd. to build the 900 megawatt Arun III hydropower station coincides with a visit by Modi, who has been keen to spread India's influence in the Himalayan nation. The $1.04 billion project is expected to begin producing electricity in 2020. More than three quarters of its output will be exported to India, said Ghanashyam Ojha, external affairs official at the Investment Board Nepal. The Arun III agreement, which was endorsed by Nepal's Cabinet late Monday, comes just two months after a similar deal with another Indian company.
