Nepal has made the decision to permit Satluj Jal Vidyut Nigam (SJVN) Limited of India to build a second hydropower project there. Currently, SJVN is working on a 900 MW run-of-river hydroelectric project called Arun-III, which is expected to be finished in 2024 and is situated on the Arun River in Eastern Nepal. The Lower Arun Hydropower Project in eastern Nepal, with a capacity of 669 megawatts (MW), was approved at a meeting of the Investment Board Nepal (IBN), which was presided over by Prime Minister Pushpa Kamal Dahal alias Prachanda.

Key Points of India’s Approval to Establish a Second Hydropower Project in Nepal

A few days before Prime Minister Prachanda visited India, the decision for development was made. Before it is put into action, the draught must have the Council of Ministers’ approval. IBN had already approved an investment of Rs 92.68 billion for the project’s development. According to a statement by the IBN, the construction of this 669-MW revolutionary project will prove to be a turning point in the nation’s socioeconomic development. In Nepal, the SJVN established the Lower Arun Power Development Company.

The Lower Arun project, which is located in the Sankhuwasabha and Bhojpur districts, will be a tailrace development of Arun-III and will not have any reservoirs or dams, meaning water will re-enter the river for the project. After the 900 MW Arun-III and 695 MW Arun-IV hydroelectricity projects, this is the third project on the Arun River that has been undertaken, all through negotiating periods. In the Sankhuwasabha district, the three projects will use the river to produce roughly 2,300 MW of power.