SJVN has signed a memorandum of understanding with Investment Board of Nepal (IBN) for the development of the Lower Arun-3 hydropower project n the hilly nation.
The document was signed by Nand Lal Sharma, CMD, SJVN, and Sushil Bhatta, CEO, IBN.
SJVN Ltd has bagged the development rights of the 679-mw Lower Arun hydropower project through international competitive bidding, which involved big international players.
Tail-race Development
The Lower Arun project will not have a dam or reservoir of its own but will be a tail-race development of the 900-mw Arun-3 hydropower project in Nepal, also being developed by SJVN. The Lower Arun project will be developed by SJVN under a 25-year concession agreement, on build-own-operate-transfer (BOOT) basis.
Located in the Sankhuwasabha and Bhojpur districts of Nepal, the project will have four Francis type turbines, capable of generating 2,970 million kwh of electricity annually. Lower Arun is is scheduled to be completed in four years after commencement of construction activities.
Also See: SJVN plans Rs.5,000 crore capital expenditure in FY22
Update on Arun-3
SJVN started its journey in Nepal in 2008 by signing of MoU for implementation of the 900-mw Arun-3 hydropower project. Arun-3 is currently under physical construction and has achieved significant progress, especially in the last three years.
Editor’s Note: It may be noted that in January 2021, a government release had said that SJVN Ltd has been allotted the 679-mw Lower Arun hydropower project in Nepal, under international competitive bidding. The Investment Board of Nepal, in its meeting on January 29, 2021, chaired by then Prime Minister of Nepal, K.P. Sharma Oli, awarded the project to SJVN. The current MoU therefore appears to be an agreement to start developmental works.
