New Delhi: Bhilwara Energy (BEL) said it has tied up finances worth Rs 663 crore for its 120 MW hydro power project in Nepal.

"BEL said a consortium of Indian and Nepali Banks have pledged Rs 663 crore to its 120 MW Likhu IV Hydro Electric Project in Nepal being developed by a Special Purpose Vehicle of the company," a statement said.

The SPV, Green Venture, is registered in Nepal and is a joint venture Company with Triveni Energy of Nepal, it said.

"This would be the Group's first overseas venture in Hydro Electric space. This would not only help Nepal in harnessing of its hydro power potential and address its own growing needs of power but also help India in terms of supply of much needed power," BEL Managing Director Riju Jhunjhunwala said.

The SPV has already acquired over 90 per cent of the required project land and started pre-construction activities, he said.

The total capital outlay for the project is Rs 1,020 crore, BEL CEO O P Ajmera said.

The project has been approved for a total loan of Rs 663 crore by consortium of Indian and Nepali Bankers with IDBI Bank Ltd being the lead lender and others members of the Consortium are Oriental Bank of Commerce, Punjab & Sind Bank, Exim Bank, PTC Financial Services and Everest Bank of Nepal.

As per Nepal India Cooperation on Hydropower (NICOH), current estimates are that Nepal has approximately 42,000 MW of economically feasible hydropower potential.

However, the country has developed only approximately 600 MW of hydropower.