KATHMANDU: The Indian government has approved around Rs 91 billion in investment for the Lower Arun Hydroelectric Project, which is being developed by India’s state-owned SJVN Limited.
The Cabinet Committee on Economic Affairs, chaired by Indian Prime Minister Narendra Modi, approved the investment of INR 5,792.36 crore (around Rs 91 billion) for the 669 megawatts project, according to India media reports.
“The Committee has also accorded Ex-post facto approval for Special Purpose Vehicle SJVN Lower Arun Power Development Company Private Limited (SLPDC), a wholly owned subsidiary of SJVN incorporated in Nepal for implementation of LAHEP [Lower Arun Hydro Electric Project],” reads one of the report. “In addition to this, the Committee has also approved the equity investment of Rs.1737.70 crores [ around Rs 27 billion] in SLPDC.”
Lower Arun is one of the projects –along with 900 megawatts Arun III and 490 megawatts Arun IV–being developed by SJVN in Nepal.
Nepal Electricity Authority and the SJVN have signed a joint venture agreement to develop the Arun IV project.
To be built under build, own, operate and transfer (BOOT) model, Lower Arun is scheduled to be completed in five years and expected to generate 2,901 million units of electricity annually.
The hydel project will not have any reservoir as it is going to be a tailrace development of the Arun III hydro project.
Earlier in July, 2021, the Investment Board of Nepal (IBN) and SJVN had signed a memorandum of understanding in Kathmandu to develop the hydropower project in eastern Nepal.
Last year in April, right before the then Prime Minister Pushpa Kamal Dahal’s visit to India, the IBN had approved an investment of Rs 92.68 billion proposed by SJVN to develop the project.
Later in June the same year, SJVN signed the project Development Agreement (PDA) with IBN during the then Prime Minister Pushpa Kamal Dahal’s visit to India.
Officials from SJVN have said in the past that they aim to invest in projects generating 5,000 megawatts of electricity in Nepal by 2030.
