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SJVN signs PDA for Lower Arun hydroelectric project

Friday, 02 Jun 2023

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SJVN has signed a project development agreement (PDA) for the 669 MW Lower Arun hydroelectric project (HEP) worth Rs 5,792 crores which is expected to be completed within five years. The project site is located in the Sankhuwasabha and Bhojpur districts of Nepal.

Under the PDA agreement, SJVN will be executed on a build, own, operate, transfer (BOOT) basis, and generate 2,901 million units of energy on completion. Moreover, the company is also constructing a 217 km associated transmission network for power evacuation and export to India.

The tail race development of the 900 MW Arun III HEP project will exclude the reservoir or dam and operate as a tandem operation system (TOS) with the Arun III project.

Currently, SJVN is implementing three hydro projects of 2,059 MW in Nepal. The 900 MW Arun III HEP is in an advanced stage of construction, and further, the firm will construct 490 MW Arun IV HEP in a joint venture (JV) with Nepal Electricity Authority. Additionally, the company aims for 5,000 MW projects in Nepal by 2030.