The Cabinet Committee on Economic Affairs (CCEA) approved an investment proposal of the Satluj Jal Vidyut Nigam Limited (SJVN) in Nepal’s Arun-3 Hydro Electric Project (HEP).
The approval was given by the CCEA at a meeting chaired by the Prime Minister Narendra Modi on 22 February 2017 in New Delhi.
Details related to the CCEA’s approval
• The SVJN, a central public sector undertaking, will invest Rs 5723.72 crore in the 900 MW Arun-3 HEP.
• Completion period of the project shall be 60 months from the date of financial closure of the project.
• Ex-post facto approval was given for incorporation of the SJVN Arun-3 Power Development Company (P) Limited (SAPDC).
• The SAPDC is the implementing agency of the Arun-3 HEP. It was already incorporated in Nepal as a 100 per cent subsidiary of the SJVN.
• Any component of the work already or been made by the Nepalese authorities shall be so certified by Central Electricity Authority (CEA) and shall be accordingly deducted from the project cost requirements.
About Arun-3 Hydro Electric Project
• The project is located on Arun River in Sankhuwasabha District of Eastern Nepal.
• The run-of-river scheme envisages about 70 meters high concrete gravity dam and Head Race Tunnel (HRT) of 11.74 kilometers with underground power house containing four generating units of 225 MW each on the left bank.
• SJVN bagged the project through international competitive bidding. Consequently, a Memorandum of Understanding (MoU) was signed between Government of Nepal and the SJVN in March 2008.
• The SVJN executes the project on build, own, operate and transfer (BOOT) basis for a period of 30 years including five years of construction period.
• The Project Development Agreement (PDA), signed on 25 November 2014, provides 21.9 per cent free power to Nepal for the entire concession period of 25 years.
What: Approved by the CCEA
When: 22 February 2017