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Tata Power has forged an exclusive pact with Norway’s renewable energy company S N Power to jointly set up hydel power projects in India and Nepal.

According to a Reuters report, quoting a compay official, Tata Power may invest up to $3.2 billion over the next five to eight years as part of the joint venture.

Both the companies are looking at developing capacities of 2,000 MW by 2015 and a total of 4,000 MW by 2020, a Tata Power statement said.

Each joint project will be developed through a Special Purpose Vehicle (SPV) structure. For SPVs in Nepal, SN Power will hold 50% of the total issued and paid up capital of the SPV + one equity share. For SPVs in India, Tata Power will hold 50 percent of the total issued and paid up capital of the SPV + one equity share. Both companies will have equal say in all matters across all SPVs, the statement added.

Tata Power and SN Power have already begun pursuing potential project opportunities based on the vast reserves of renewable energy in the Himalayas.

Both companies will also set up a services company in India. They are also considering co-development of the Tamakoshi 3 project in Nepal to which SN Power holds licence rights.

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