SJVN signs MoU with Nepal government to develop 679 MW lower Arun hydel project

New Delhi: SJVN, a Central Public Sector Enterprise under Ministry of Power, Government of India has signed Memorandum of Understanding with Investment Board of Nepal for execution of 679 MW Lower Arun Hydro Electric Project in Nepal. With the active support of Ministry of Power, GOI, SJVN won the project through International Competitive Bidding defeating other companies of the neighbouring countries.

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. Arun-3 Project is being implemented through wholly owned subsidiary company of SJVN i.e. SJVN Arun-3 Power Development Company Limited (SAPDC) incorporated in Nepal. SJVN Limited was allotted even this project through international competitive bidding by Government of Nepal on Build Own Operate and Transfer (BOOT) basis with a concession period of 25 years excluding 5 years of construction time.

The Foundation Stone of the Arun 3 project was jointly laid by Prime Minister of India Narendra Modi and Hon'ble Prime Minister of Nepal Sh. K P Sharma Oli at Kathmandu on May 11, 2018.

Arun 3 HEP is the largest project in Nepal and also the largest investment of around INR 7000 Crores 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.

Project construction works are going on in full swing. The power from this project will be evacuated to India through the 400 kV double circuit transmission line to Sitamarhi in Bihar, India, also being constructed by SAPDC.

During the visit of R K Singh, Minister of Power to Nepal in September, 2019, he convinced the PM of Nepal to allot SJVN, the Lower Arun HEP (679 MW), a downstream development of Arun-3 HEP based on the capabilities, proven track record of SJVN in hydro sector as also shown by the progress of construction activities of Arun 3 HEP in Nepal. Ministry of Power under the able leadership of R K Singh, Minister of Power has introduced various landmark measures to promote development of hydro power sector.