SJVN signs MoU with Nepal for $1.3bn Lower Arun Hydroelectric Project

Satluj Jal Vidyut Nigam (SJVN) has inked a memorandum of understanding (MoU) with Investment Board Nepal for developing the 679MW Lower Arun Hydroelectric Project in the Himalayan nation.

The company is a joint venture of the Indian government and Himachal Pradesh government, which is specialized in hydroelectric power generation.

The Lower Arun Hydroelectric Project is estimated to cost $1.3 billion as per Investment Board Nepal, a Nepalese government agency for fostering economic development in the country.

According to Investment Board Nepal, the Lower Arun hydropower project will be constructed on the tributaries of the Jhelum and Chenab rivers. The Nepalese hydroelectric project will come up in the districts of Sankhuwasabha and Bhojpur.

Following its commissioning, the Lower Arun Hydroelectric Project will generate 3,561 million units of clean power annually.

SJVN will develop the Lower Arun hydropower plant under the build, own, operate, and transfer (BOOT) model.

Sushil Bhatta – Investment Board Nepal CEO said: “The signing of this MoU will be proved to be a milestone for business cooperation between Nepal and India.”

Investment Board Nepal expects SJVN to undertake a detailed project study of the Lower Arun hydropower project and submit the report for approval within two years of signing the MoU.

Binay Mohan Kwatra – Indian Ambassador to Nepal said: “The signing of the MoU would pave the way for energy infrastructure development and the overall economic prosperity of Nepal.”

As per a report from ANI, the Lower Arun Hydroelectric Project will not feature any reservoir or dam. Rather it will be developed as a tailrace to the 900MW Arun-III hydropower project, which is being constructed under an Indo-Nepalese collaboration.

The Arun 3 hydropower project, which broke ground in mid-2018 is slated to begin operations in 2023.