India Approves Investment for 669 MW Lower Arun, Sets Tariff at Rs 4.99 Per Unit

Kathmandu: The Government of India (GoI) has approved an investment of IC 57.92 billion (92.672 billion NPR) for the Satlaj Jalvidhyut Nigam (SJVN) to construct the 669 MW Lower Arun Hydropower Project. The GoI, Cabinet Committee on Economic Affairs (CCEA) has approved this amount at a tariff of Rs 4.99 (7.98 NPR) per unit.

The CCEA also granted retroactive approval for the special purpose vehicle and approved an equity investment of Rs 17.37 billion in SJVN Lower Arun Power Development Company Private Limited. The project, located in Nepal’s Sankhuwasabha district, will use four units of 167.25 MW each and is expected to generate 2,900 million units of energy annually.

The project is anticipated to be completed within 60 months and will connect to a 217 km long transmission line currently it is under construction from Shankhuwasabha to Dhalkebar (Nepal), which will extend to Sitamarhi, Bihar (India). Additionally, SJVN is planning to construct 490 MW Arun-4 project soon, said the project representative.

At this time, the 900 MW Arun-3 is under construction, with over 75 percent physical progress. The Indian company SJVN is also planning to build the 1,063 MW Upper Arun and is negotiating internally with the Government of Nepal (GoN) to take on the project.