State-run Satluj Jal Vidyut Nigam (SJVN) has signed a memorandum of understanding with the Investment Board of Nepal to build the 679 mega-watt (MW) Lower Arun Hydro Electric Project in the neighbouring country.
SJVN won the project through competitive bidding after defeating other companies in the auction. The project is scheduled to be completed in four years after commencement of construction, and has been allocated to SJVN for 25 years on build-own-operate-transfer basis.
This is the second project awarded to SJVN in Nepal, after the 900 MW Arun 3 Hydro Electric Project in Sankhuwasabha district. The Arun 3 plant is the largest project in Nepal entailing an investment of around Rs 7,000 crore made jointly by India and Nepal.
Project construction works are currently underway, and electricity from the plant will also be supplied to India. During his visit to Nepal in September 2019, power minister RK Singh had convinced the Prime Minister of the country to allot the Lower Arun hydro project to SJVN, the government said.