CCEA approves $854.4 million investment for 900-MW Arun 3 hydropower project in Nepal

The Cabinet Committee on Economic Affairs (CCEA) has approved investment for the generation component of 900-MW Arun 3 hydropower project for an estimated Rs. 5723.72 crore ($854.4 million).

The project is located on Arun River in Sankhuwasabha district of eastern Nepal. It is expected to be completed within five years from the date of financial closure, which is planned for September 2017.

About Arun 3 hydropower project

  • The project is based on Run-of-River scheme that envisages about 70 metre high concrete gravity dam and 74 Km Head Race Tunnel (HRT).
  • It also has underground Power House containing four generating units of 225 MW each on Left Bank.
  • Satluj Jal Vidyut Nigam (SJVN) Limited had bagged the project through International Competitive Bidding. It had signed MoU with Nepal Government for the project in March 2008.
  • The execution of the project will be on Build Own Operate and Transfer (BOOT) basis for a period of 30 years including five years of construction period.
  • The Project Development Agreement (PDA) was signed in November 2014, which provides 21.9% free power to Nepal for the entire concession period of 25 years.
  • The surplus power from the project will be exported to India from Dhalkebar in Nepal to Muzaffarpur in Bihar. It will strengthen power availability in India and also economic linkages with Nepal.

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Categories: India Current Affairs 2017

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