Tata Power Company (TPC), India’s largest private power utility, has signed an exclusive joint venture agreement with SN Power, a Norwegian power company to jointly develop 2,000 MW of projects in India and Nepal under construction or in operation by 2015 and a total of 4,000 Mw by 2020.

Sources reported that the proposed project entails an investment of about Rs 15,000 crore, if calculated at a rate of Rs 5-8 crore per Mw of power generation.

Besides the latest alliance, Tata Power and SN Power are also looking at co-developing the Tamakoshi-3 project in Nepal, to which SN Power holds license rights.

According to a company official, who did not want to be identified, each joint project, most yet to be finalized, will be developed through a Special Purpose Vehicle (SPV) structure.

The joint venture plans to raise funds from international lenders such as International Finance Corporation.