SJVN, CPSE enter pact for 679 MW hydroelectric project in Nepal

13 Jul 2021 CW Team

Satluj Jal Vidyut Nigam Limited (SJVNL) and Investment Board of Nepal (IBN) have signed a memorandum of understanding (MoU) for the execution of the 679 MW Lower Arun hydroelectric project (HEP) in Nepal.

With the support of the Ministry of Power, the Indian government, SJVN won the project against other neighbouring countries through International Competitive Bidding.

When the Ministry of Power and Ministry of New and Renewable Energy, R K Singh, visited Nepal in September 2019, convinced the Prime Minister of Nepal to allot SJVN a 679 MW Lower Arun Hydro-Electric Power.

The MoU was signed by the Chairman and Managing Director of SJVN, Nand Lal Sharma and IBN's Chief Executive Officer, Sushil Bhatta, in the presence of Nepal's Deputy Prime Minister, Bishnu Prasad Paudel, and Indian Ambassador to Nepal, Vinay Mohan Kwatra. Senior officials from the Government of Nepal and SJVN were also present. SJVN got the 679 MW Lower Arun HEP through ICB, involving major players.

The Arun-3 hydroelectric project is in the Sankhuwasabha and Nepal's Bhojpur Districts. The Arun HEP will have four Francis turbines, which will generate 2970 million units of electricity per year. It is to be completed within four years after the commencement of construction activities. The project has been given to SJVN Limited for 25 years on the Build Own Operate Transfer basis.

The Arun-3 HEP is the largest project in Nepal, with an investment of Rs 7,000 crore by India in Nepal. The power generated through this project will be evacuated to India by a 400 kV double circuit transmission line to Sitamarhi in Bihar, which is also being constructed by SJVN Arun-3 Power Development Co Pvt Ltd (SAPDC).

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Also read: NHPC, JKSPDC form JV for 850 MW Ratle hydroelectric project

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