New Delhi, November 23:

LNJ Wilbara Group of India and Iceland’s Giltner Bank have signed a memorandum of understanding today for setting up thermal energy plants in Nepal and India.

The Giltner Bank and LNJ will invest Rs 27 billion in the process. The thermal energy plant will produce energy following a certain process by heating the underground water and hot liquid containing lava.

Executive director of the Giltner Bank Bala Kamalakaran said the MoU was signed with the purpose of preparing the detailed project report and development of the thermal energy plants in Nepal and India in partnership with the Indian company.

“Our core area of operation throughout the world is geothermal energy,” executive director

of the bank Kamalakaran said.

However, he said that no decision has been finalised on the investment as no project has been selected as yet.

The Giltner Bank will mobilise its expertise and financial resources while the LNJ Wilbara Group of India will work as local promoter and manager. “We have successfully set up a thermal plant in China,” executive vice-president of the Giltner Bank Magnus Bajranson said.