SJVNL gets Central nod for 900-mw Nepal project

Tribune News Service

Shimla, February 23

The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has approved the investment proposal for 900 mw Arun–III Hydroelectric Project in Nepal. The project is located in Sankhuwasabha district of Nepal on the Arun river and is a run-of-the-river project.

According to the SJVNL press release issued here today, RN Misra, CMD, SJVNL, along with other senior officials paid a visit to the office of Union Minister of Power Piyush Goyal for his support.

Misra said a 70-m-high gravity dam would be constructed from which water would be diverted into 11.74 km tunnel. The power station would generate 4,018 mu of electricity.

Misra said the project would be executed through SJVN Arun III Power Development Company (SAPDC), which was a fully owned subsidiary of the SJVNL. The company has already been registered in Nepal as per Nepalese Companies Act on April 25, 2013.

The estimated cost of project is Rs 5,723.72 crore according to May 2015 price levels. The SJVNL will complete the project in 60 month from the date of financial closure which is planned for September 2017.

The SJVNL bagged the project through international competitive bidding and an MoU was signed with the Nepal government. The project will generate employment for around 3,000 persons in the construction phase.