The Investment Board Nepal (IBN) on Thursday permitted NHPC Limited, India, to carry out study of 750 MW West Seti Reservoir Hydropower Project.

IBN Chief Executive Officer Sushil Bhatta handed over the study license to Deputy Director of NHPC Ashok Kumar Joshi. The Indian company on September 27 had applied at the IBN for the study license.

According to the agreement, the Indian company will have to submit a preliminary report of the survey within three months to the Board, while it needs to submit the detailed project report (DPR) in the next 21 months.

The government signed a memorandum of understanding (MoU) with NHPC on August 18. NHPC had already signed a power purchase agreement with Power Trade Corporation India Limited (PTC), an entity of the Indian government, to sell its production.

Both the projects will cost an estimated Rs 300 billion. Of the amount, NHPC has pledged to invest Rs 288 billion (INR 180 billion).