India approves SJVN’s 900 MW Arun III Nepal Hydropower Venture

The Cabinet Committee on Economic Affairs presided over by Prime Minister Mr Narendra Modi today cleared an investment proposal for the 900 MW Arun-III Hydro Electric Project in Nepal.

The prestigious project is located in Sankhuwasabha District of Nepal on Arun River and is a run-of-the-river project. The project is estimated to cost Rs. 5723.72 crore at May 2015 price levels. Completion Period of the project shall be 60 months from the date of financial closure which is targeted for September 2017.

Giving details about the project Mr RN Misra, Chairman & Managing Director SJVN said, “A 70 meter high gravity dam will be constructed from which water will be diverted into 11.74 km long Head Race Tunnel (HRT). The power house will consist of 4 Vertical Francis type generating units of 225 MW each amounting to 900 MW of electricity. In a 90% dependable year the power station will generate 4018 Million Units of electricity.”

India Nepal sign agreement for Arun Project (File Photo)

The project is to be executed through SJVN Arun III Power Development Company (SAPDC), which is a wholly owned subsidiary of SJVN. The company has already been registered in Nepal as per Nepalese Companies Act on 25.04.2013.

SJVN had bagged the project through International Competitive Bidding and a Memorandum of Understanding (MOU) was signed with the Government of Nepal for it’s the execution on Build, Own, Operate & Transfer (BOOT) basis.  The project is expected to open up employment avenues for at least 3000 persons during the construction phase.

The Project Development Agreement (PDA) signed on 25.11.2014 provides for 21.9% of free power to Nepal for the entire concession period of 25 years. The surplus power from the project is to be exported from Dhalkebar in Nepal to Muzaffarpur in India.

The project will provide surplus power to India strengthening power availability in the country and will also strengthen the economic linkages with Nepal.

On the project getting approval from the government Mr Misra along with other senior officials of SJVN called up minister of power Mr. Piyush Goyal to convey their appreciation for having reposed faith in Team SJVN.

Join the Conversation


  1. says: Amit Dhiman

    I am an Civil Engineer and I am interesting to do work here. I have an 1 year Field experience in Building construction and I am interesting to do work in Hydro electric project.

  2. says: alan limbu

    I am a mechanical engineer fresher from Nepal. I have a keen interest in hydropower sector. Recently i just missed the interview for the vacancy. I want to work in your company as an intern. So if there is any vacancy or internship program for me then let me know in my gmailid. thank you

  3. says: Nitish sharma

    hi I’m civil engineer,looking to make career in hydro project and in tunnel construction, currently working in tunnel in himachal Pradesh,looking more opputunites and wiiling to relocate doest matter ,pls suggest me any opportunity,
    Nitish sharma

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