Kathmandu, Aug 17 - Jindal Steel and Power Ltd, the third largest Indian steel manufacturer whose owners are ranked among the 20 richest Indians by Forbes magazine, has lost its bitter battle for control of a much-sought-after hydro power project in Nepal with the republic's apex court upholding the contract to another Indian contender.

Jindal went to court last year after the Nepal government awarded the 402 MW Arun III project to Satluj Jal Vidyut Nigam, the public sector undertaking owned by the government of India as well as the state government of Himachal Pradesh.

After the sea change in Nepal's political scenario in 2006, when a new coalition government replaced the regime of King Gyanendra, the hydropower sector was opened to international players and nine companies, mostly Indian, had bid for Arun III.

Jindal's bid was among the most attractive with its offer to provide 21 percent free energy to power-starved Nepal.