Published On:February 23 2017
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Govt okays ₹5,723-crore hydro project in Nepal.

The Cabinet Committee on Economic Affairs has approved an investment proposal for generation component of Arun-3 Hydro Electric Project in Nepal by public sector undertaking SJVN Ltd.

Briefing newspersons after the Cabinet meeting, Piyush Goyal, Minister of State for Power, Coal, Renewable Energy and Mines, said, “The project was first initiated in March 2008 through and MoU between SJVN and the Nepal government…The project development agreement was signed on November 25, 2014, through which 21.9 per cent free power will be given to Nepal.”

A government statement said that the CCEA has approved an investment for the generation component of Arun-3 HEP (900 MW) for an estimated cost of ₹5,723.72 crore at May 2015 price level.

The statement further noted that the completion period of the project shall be 60 months from the date of financial closure which is planned for September this year.

The project is located on Arun River in Sankhuwasabha District of Eastern Nepal. The Run-of-River scheme envisages about 70-metre high concrete gravity dam and Head Race Tunnel (HRT) of 11.74 km with underground an Power House containing four generating units of 225 MW each on Left Bank. The power from the project shall be exported from Dhalkebar in Nepal to Muzaffarpur in India according to the statement.


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