Nepal has given its approval for India’s Satluj Jal Vidyut Nigam (SJVN) Limited to develop a second hydropower project in the country. The decision was made during a meeting of the Investment Board Nepal (IBN) chaired by Prime Minister Pushpa Kamal Dahal Prachanda. The draft project development agreement (PDA) to be signed with SJVN for the 669-megawatt (MW) Lower Arun Hydropower project in eastern Nepal was approved.
The Lower Arun project, located in the Sankhuwasabha and Bhojpur districts, will not involve the construction of a reservoir or dam. Instead, it will be a tailrace development of the Arun-III hydroelectric project, which means that the water will re-enter the river for the Lower Arun project. This innovative approach allows for the utilization of the river’s potential without disrupting its natural flow.
The approval of this second project comes as SJVN is already in the process of developing the 900-MW Arun-III hydroelectric project, which is scheduled to be completed in 2024. With the addition of the Lower Arun project, SJVN’s presence and contribution to Nepal’s hydropower sector will further strengthen.
The development of the Lower Arun project is expected to be a significant milestone for the socio-economic development of Nepal. The project is anticipated to generate around 669 MW of clean energy, adding to the overall energy capacity of the country. This will not only help in meeting the growing demand for electricity but also contribute to reducing Nepal’s reliance on imported energy sources.
The project’s development will also have positive implications for the local economy. SJVN has established a local company, the Lower Arun Power Development Company, in Nepal, indicating a commitment to involving local stakeholders and creating job opportunities for the community.
The approval of the draft PDA is a crucial step towards the implementation of the project. However, it still needs to be endorsed by the Council of Ministers before it can proceed. Once the necessary approvals are obtained, SJVN can begin the actual development work on the Lower Arun project.
The development of the Lower Arun project marks the third hydroelectric project on the Arun River, following the Arun-III and Arun-IV projects. Collectively, these three projects will generate approximately 2,300 MW of electricity, making a significant contribution to Nepal’s energy sector and paving the way for sustainable development.
The timing of this approval is noteworthy, as it comes just before Prime Minister Prachanda’s visit to India. The collaboration between Nepal and India in the field of hydropower is a testament to the strong bilateral ties and mutual cooperation between the two countries.
Overall, the approval of the second hydropower project by SJVN Limited in Nepal is a positive development that holds great potential for the country’s energy sector and economic growth. It demonstrates Nepal’s commitment to harnessing its hydropower resources and strengthening its partnership with India in achieving sustainable development goals.
