SJVN’s 669 MW Lower Arun Hydroelectric Project gets Cabinet approval
New Delhi, 02 August: The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi has approved an investment of Rs 5792.36 crore for 669 MW Lower Arun Hydroelectric Project (LAHEP) in Nepal. The project will operate at a levelized tariff of Rs 4.99 per unit.
The Committee also gave retrospective approval to Special Purpose Vehicle, SJVN Lower Arun Power Development Company Private Limited (SLPDC), a wholly owned subsidiary of SJVN incorporated in Nepal, which will implement LAHEP. Additionally, the Committee also approved equity investment of Rs 1737.70 crore in SLPDC.
The Lower Arun Hydroelectric Project, consisting of four units of 167.25 MW each, is located downstream of the 900 MW Arun-3 Hydroelectric Project on Arun River in Sankhuwasabha District of Province-1 in Nepal. Designed as a tail race development of Arun-3 Hydroelectric Project, the project will not require any reservoir or dam and will operate in tandem with Arun-3 Hydroelectric Project. It is expected to generate 2900 million units of energy annually.
SJVN secured the project through international competitive bidding and will implement it on Build-Own-Operate-Transfer (BOOT) basis with the active support of Ministry of Power, Government of India. The project is to be completed within 60 months from the date of investment approval. The power generated will be evacuated through a 217 km, 400 kV double circuit transmission line, currently under construction, extending up to Sitamarhi, Bihar.
The Project Development Agreement for LAHEP was signed between Board of Investment of Nepal and SJVN on June 1, 2023, in the presence of Prime Minister of India and Prime Minister of Nepal.
SJVN is a key partner and reliable investor in the socio-economic development of Nepal. Implementing mega hydro projects is a mutually beneficial endeavour for both countries, contributing to the economic development of India and Nepal. The power generated from this project will be fully utilized in the Nepal and Indian grids, thereby enhancing grid stability. Additionally, the project will add valuable renewable energy to the grid and reduce carbon emissions by about 2.6 million tonnes annually.
The project also provides opportunities for Indian contractors to participate in the construction and export construction materials and equipment from India to Nepal. It will create employment opportunities for the citizens of both countries and improve bilateral relations between India and Nepal.
Currently, SJVN is implementing three hydropower projects in Nepal: 900 MW Arun-3, 669 MW Lower Arun, and 630 MW Arun-4, with a total capacity of 2199 MW.
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