Nepal has signed a $1.3 billion agreement with India’s hydropower company Satluj Jal Vidyut Nigam (SJVN) to build a 679 MW hydropower project in eastern Nepal. The project was won through an international competitive bidding process.
The Lower Arun Hydroelectric Project is located in Nepal’s districts of Sankhuwasabha and Bhojpur. The project holds a capacity of 679 MW, and will generate around 3000 million units of energy per year when completed. They will contribute to overall development and mutual economic prosperity in India and Nepal. The project has been assigned to the SJVN for a period of 25 years on a build-own-operate-transfer (BOOT) basis and will include four Francis turbines.
The infrastructural growth associated with project operations will support the region’s overall socioeconomic development. SJVN is already building a 900 MW Arun 3 HEP in Nepal, as well as a 217km 400 kV related transmission infrastructure. SJVN’s portfolio has grown to 8,960.5 MW with the inclusion of the Lower Arun Hydro Electric Project.
SJVN now has an installed capacity of 2,016.51 MW and plans to grow to 5,000 MW by 2023, 12,000 MW by 2030, and 25,000 MW by 2040. SJVN has a presence in several energy generation sectors, including hydro, wind, solar, and thermal. The firm is also active in the sector of energy transmission.
