Himtal to Sell 80% Stake to GMR

The Indian company GMR Energy Ltd. has entered into a share purchase and joint venture agreement to acquire 80 percent stake of Himtal Hydro Power Co. (P) Ltd., which is implementing a 250-MW Upper Marsyangdi-2 Hydro Power project. In a filing to Bombay Stock Exchange, GMR Infrastructure, the parent company of GMR Energy, has notified that the relevant application has been submitted to the authorities of Nepal seeking their approval for the proposed joint venture and to start the feasibility study and environmental impact assessment.

Reports quoting Brindawanman Pradhananga, Chairman of Himtal, state that the project with its construction sites in Manang and Lamjung, was originally estimated to generate 125 MW which has now been increased to 250 MW after GMR showed interest in the project. The joint-venture deal between Himtal and GMR was signed during the energy convention held at Kathmandu last year. The total cost for the project at 125 MW capacity was estimated at 200 million US dollars which will go up as the capacity is now to be expanded.