Shimla, 02.08.2024: The Cabinet Committee on Economic Affairs (CCEA), led by Prime Minister Narendra Modi, has given the green light to the 669 MW Lower Arun Hydro Electric Project (LAHEP) in Nepal, with an investment of Rs 5792.36 crore.
According to SJVN, project will generate power at a levelized tariff of Rs 4.99 per unit.
The CCEA also approved the setup of SJVN Lower Arun Power Development Company Private Limited (SLPDC), a subsidiary in Nepal, and sanctioned an equity investment of Rs 1737.70 crore in SLPDC.
The Lower Arun project, located downstream of the 900 MW Arun-3 project on the Arun River in Nepal's Sankhuwasabha district
It will generate 2900 million units of electricity annually without a reservoir or dam.
SJVN won the project through international bidding and will execute it on a Build-Own-Operate-Transfer (BOOT) basis, with completion expected in 60 months.
The power will be transmitted through a 217 km, 400 kV double circuit line to Sitamarhi, Bihar.
The project development agreement was signed on June 1, 2023, in the presence of the Prime Ministers of India and Nepal.
SJVN is a major partner in Nepal’s development, and this project will boost economic growth in both countries, provide renewable energy, reduce carbon emissions by 2.6 million tonnes annually, and create jobs.
Currently, SJVN is working on three hydro projects in Nepal: 900 MW Arun-3, 669 MW Lower Arun, and 630 MW Arun-4, totaling 2199 MW.