2nd HydroPower Project In NepalNepal has granted permission to India’s Satluj Jal Vidyut Nigam (SJVN) Limited to develop a second hydropower project in the country. Currently, SJVN is already working on the 900-MW Arun-III hydroelectric project on the Arun River in Eastern Nepal, which is expected to be completed in 2024. The Investment Board Nepal (IBN), chaired by Prime Minister Pushpa Kamal Dahal, also known as Prachanda, approved the draft project development agreement (PDA) with India’s state-owned SJVN for the 669-megawatt (MW) Lower Arun Hydropower project in eastern Nepal.

2nd HydroPower Project In Nepal- Explained In Detail

The approval for the development of the project came just before Prime Minister Prachanda’s visit to India. This highlights the timing of the approval, which coincided with the upcoming visit of Prime Minister Prachanda to India, indicating the importance and significance of the project in the bilateral relations between the two countries. The draft agreement needs to be endorsed by the Council of Ministers before it can be implemented. The previous meeting of the IBN had already approved an investment of Rs 92.68 billion for the project’s development. This emphasizes the procedural steps that need to be followed before the project can proceed. The draft agreement will require endorsement by the Council of Ministers, and it also mentions the previous approval of a significant investment for the project’s development.

The development of the 669-MW Lower Arun project is expected to be a significant milestone for the socio-economic development of Nepal, according to the statement by the IBN. This point highlights the potential impact of the Lower Arun project on the socio-economic development of Nepal. The project is seen as a significant milestone in advancing the country’s progress and well-being. SJVN has established a local company, the Lower Arun Power Development Company, in Nepal. This bullet point mentions the establishment of a local company by SJVN specifically for the development of the Lower Arun project. This demonstrates the commitment and involvement of SJVN in the project and its efforts to engage with the local stakeholders. The Lower Arun project, located in the Sankhuwasabha and Bhojpur districts, will not have a reservoir or dam. It will be a tailrace development of Arun-III, meaning the water will re-enter the river for the Lower Arun project. This point provides details about the project’s location and its unique characteristics. The Lower Arun project will be a tailrace development, utilizing the outflow of water from the Arun-III project, without the need for a reservoir or dam. This information highlights the sustainable and environmentally friendly approach of the project. This is the third project on the Arun River, following the 900 MW Arun-III and 695 MW Arun-IV hydroelectricity projects, all developed through negotiation windows. This bullet point explains the context of the Lower Arun project by mentioning that it is the third project on the Arun River. It highlights the previous successful projects, Arun-III and Arun-IV, and indicates that all three projects were developed through negotiation windows, showcasing the collaborative approach taken in their development.

Collectively, these three projects will generate nearly 2,300 MW of electricity in the Sankhuwasabha district from the river. This final point summarizes the cumulative impact of the three projects on the Arun River. Together, they will generate a significant amount of electricity, approximately 2,300 MW, benefiting the Sankhuwasabha district and contributing to the region’s power generation capacity.

2nd HydroPower Project In Nepal-Conclusion

India’s approval to set up a second hydropower project in Nepal, the Lower Arun Hydropower project, reflects the growing cooperation between the two countries in the field of renewable energy. This development will contribute to Nepal’s socio-economic progress by harnessing the potential of its rivers for clean energy generation. The collaboration between India’s SJVN and Nepal demonstrates the commitment to bilateral partnerships and sustainable development in the region.


What is the Lower Arun Hydropower project?

The Lower Arun Hydropower project is a 669-megawatt (MW) hydropower project being developed by India’s Satluj Jal Vidyut Nigam (SJVN) Limited in eastern Nepal.

Will the Lower Arun project have a reservoir or dam?

No, the Lower Arun project will not have a reservoir or dam. It will be a tailrace development of the Arun-III project, where the water re-enters the river.

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