The Cabinet Committee
on Economic Affairs chaired by the Prime Minister Shri Narendra Modi has
(i) Investment for generation component of Arun-3 HEP (900 MW) for an
estimated cost of Rs. 5723.72 crore at May 2015 Price Level.
(ii) Completion period of the project shall be 60 months from the date
of financial closure which is planned for September this year.
(iii) Ex-post facto approval for the existing implementing agency,
already incorporated in the name of SJVN Arun-3 Power Development
Company (P) Limited (SAPDC) registered in Nepal as a 100% subsidiary of
SJVN Limited for implementing the project.
(iv) Any component of work already or being made by the Nepalese
authorities shall be so certified by Central Electricity Authority (CEA)
and shall be accordingly deducted from the project cost requirements,
The project is located on Arun River in Sankhuwasabha District of
Eastern Nepal. The Run-of-River scheme envisages about 70 mtr. high
concrete gravity dam and Head Race Tunnel (HRT) of 11.74 Km. with
underground Power House containing four generating units of 225 MW each
on Left Bank.
SJVN limited bagged the project through International Competitive
Bidding. An MoU was signed between Government of Nepal and SJVN Limited
for the project in March, 2008 for execution on Build Own Operate and
Transfer (BOOT) basis for a period of 30 years including five years of
construction period. The Project Development Agreement (PDA) signed on
25.11.2014, which provides 21.9% free power to Nepal for the entire
concession period of 25 years. Employment generation of around 3000
persons is envisaged in construction of the project from both India and
The project will provide surplus power to India strengthening power
availability in the country and will also strengthening economic
linkages with Nepal. The power from the project shall be exported from
Dhalkebar in Nepal to Muzaffarpur in India.