A Memorandum of Understanding (MoU) has been signed for execution of 679 Mega Watt Lower Arun Hydro Electric Project in Nepal between Satluj Jal Vidyut Nigam (SJVN) under Ministry of Power and Investment Board of Nepal (IBN) in Kathmandu Nepal. With the active support of the Ministry of Power, SJVN won the project through International Competitive Bidding, defeating other companies of the neighbouring countries.
Minister of Power R. K. Singh called this a welcome achievement saying that Nepal chose this Central Public Sector Unit based on its performance in Arun-3 HEP. During the visit of Mr Singh to Nepal in September 2019, he convinced the Prime Minister of Nepal to allot SJVN this project based on the capabilities and proven track record.
The Ministry of Power in a statement said that the Lower Arun Hydro Electric Project is located in Sankhuwasabha and Bhojpur Districts of Nepal. The project will not have any reservoir or dam and will be a tail race development of 900 MW Arun-3 HEP. The project will have four francis type turbines. On completion, the Project will generate 2,970 million units of electricity per annum. It is scheduled to be completed in four years after commencement of construction activities and has been allocated to SJVN for 25 years on Build Own-Operate-Transfer basis. This is the second project awarded to SJVN in Nepal, the first one being the 900 MW Arun-3 Hydro Electric Project in Sankhuwasabha District.
The Foundation Stone of the Arun-3 project was jointly laid by Prime Minister of India Narendra Modi and Prime Minister of Nepal K. P. Sharma Oli at Kathmandu on 11th of May 2018. Arun-3 HEP is the largest project in Nepal and also the largest investment of around Rs 7000 crore by India in Nepal. The commissioning of this project will go a long way in fostering friendship between the two neighbours and also lead to accelerated development and economic revival of Nepal.