The Project Development Agreement (PDA) for the 669 MW Lower Arun Hydro Electric Project in Nepal was signed in the presence of India’s Prime Minister, Sh. Narendra Modi, and Nepal’s Prime Minister, Sh. Pushpa Kamal Dahal. Sh. Nand Lal Sharma, Chairman & Managing Director, SJVN, and Sh. Sushil Bhatta, CEO, Investment Board of Nepal (GoN) signed the PDA in New Delhi.
Sh. Nand Lal Sharma stated on this occasion that SJVN is committed to making Lower Arun HEP a Model Hydro Project, with entire execution from concept to completion in 7 to 8 years. As a notable accomplishment, SJVN prepared the DPR for this project in record speed, and its acceptance by both governments was likewise the quickest to date.
Sh. Nand Lal Sharma thanked the Prime Minister of India, Sh. Narendra Modi, for his continuous advice and blessings, as well as Prime Minister of Nepal, Sh. Pushpa Kamal Dahal, for his faith in SJVN Limited as a Development Partner. He commended the Government of India’s Ministries of Power, External Affairs, and Jal Shakti for their assistance in expediting the project’s requisite techno-economic approvals.
“This is our second large-scale investment in Nepal, following the 900 MW Arun-3 HEP, which is nearing completion.” Now, our goal is to begin building on the project in the current fiscal year after receiving investment approval from the Government of India,” stated Sh. Sharma.
Sh. Nand Lal Sharma highlighted the key aspects, stating that the project will be completed in five years at a cost of Rs 5792 crores, with a levelized rate of Rs 4.99 per unit. The project will be built on a BOOT basis and will generate 2901 million units of energy per year when completed. In addition, SJVN is building a 217-kilometre-long related transmission network for electricity evacuation and export to India.
SJVN is an important partner and trusted investor in Nepal’s socioeconomic development. The allocation of these hydro projects under the Integrated River Basin Development strategy is a mutually advantageous endeavour for both nations, since it will result in economic growth in India and Nepal.
SJVN is currently constructing three 2059 MW hydropower projects in Nepal. The 900 MW Arun-3 HEP is nearing completion, while the 490 MW Arun-4 HEP will be created in a joint venture between SJVN and Nepal Electricity Authority. SJVN intends to build 5000 MW of power in Nepal by 2030.