Nepal's IBN and India's SJVN sign MoU on 679 MW Arun Hydro Electric Project

India and Nepal have signed a Memorandum of Understanding (MoU) for the execution of the 679 Mega Watt Lower Arun Hydro Electric Project in Nepal. The MoU has been signed between Satluj Jal Vidyut Nigam (SJVN) Central Public Sector Enterprise under the Ministry of Power, Government of India & Investment Board of Nepal (IBN) in Nepal's capital Kathmandu. India won the project through international competitive bidding, among other companies from neighbouring countries. 

According to a statement released by the ministry of power, it said, “India is also endeavoring creation of a common pool for regional power grid and energy market in the neighboring countries for regional peace and improvement of optimum utilization of generation assets".

Minister of Power RK Singh welcomed this achievement and said that Nepal chose the Central Public Sector Unit based on its performance and successful track record. This is for the second time the SJVN has won any projects in Nepal, the first being 900 MW Arun 3 Hydro Electric in Sankhuwasabha district.

Arun Hydro Electric Project

This project is one of the largest project investments of around ₹7000 crores and on completion of this project, it will generate 2,970 million units of electricity annually. Located in Sankhuwasabha and Bhojpur districts of Nepal, the project is scheduled to be completed in four years after the commencement of construction activities and has been allocated to SJVN for 25 years on a Build-Own-Operate-Transfer basis. The project will not have any reservoir or dam and will be a tailrace development of 900 MW Arun-3 HEP. The project will have four Francis-type turbines.

Notably, the Foundation Stone of the Arun 3 project was laid on May 11, 2018, by Prime Minister of India Narendra Modi and Hon'ble Prime Minister of Nepal Sh. K P Sharma Oli at Kathmandu. Arun-3 HEP is one of the largest projects in Nepal, it is believed that this project will make establish a strong bond between two neighbouring countries and will give a boost to Nepal's development and economy.

Meanwhile, the 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.