Nepal to sign deal for Indian company to build hydro power plant during Modi visit

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Officials say Nepal's government will sign an agreement with an Indian company to build a hydroelectricity plant that will export power to India.

The signing will coincide with Indian Prime Minister Narendra Modi's visit to the Himalayan nation for a South Asian regional summit.

Investment Board Nepal said the agreement would be signed with Indian company Satluj Jal Vidyut Nigam Ltd. on Tuesday to build the 900 megawatt Arun III hydropower station. The $1.04 billion project is expected to begin producing electricity in 2020, most of which will be exported to India.

It is one of the largest ever foreign investments in Nepal.

The draft agreement was endorsed by Nepal's Cabinet late Monday.

Modi is arriving in Nepal on Tuesday afternoon for a South Asian summit.