Tata Power has entered into an exclusive joint venture agreement with a Norway-based power company SN Power, to generate around 2,000 mw hydropower projects in India and Nepal at over Rs 15,000 crore.

The joint venture further aims to have a total of 4,000 mw hydropower capacities in the region by 2020. They have already begun pursuing potential opportunities based on the vast reserves of renewable energy in the Himalyas.

In addition to partnering on new project developments, Tata Power and SN Power are also considering to co-develop the Tamakoshi 3 project in Nepal to which SN Power holds licence rights.

“The agreement is exclusively for the development of hydro power in India and Nepal. However, we may look at other opportunities on case to case basis especially in Latin America and Africa where SN Power already has a presence,” Banamali Agarwala, executive director (strategy and business development) of Tata Power, told reporters in Mumbai.

S Ramakrishnan, executive director (finance) of Tata Power, said the cost of developing a hydro power project is around Rs 5-8 crore per mw, and based on back of the hand calculation, the project will cost around Rs 16,000 crore. “Except for Rs 1,000 crore, rest of the debt has already been tied up. We are seeking international debt largely to enhance the status of these projects, but we are open to domestic lenders too.”

“The project would involve an equity funding of Rs 4,500 crore, equally shared by both the companies,” Ramakrishnan added.

Tata Power at present has around 450 mw hydro power capacity in India, but SN Power is world’s fifth largest renewable power generating company.