The INR5.36bn ($80m) contract for delivering the electro-mechanical package of the hydro project was given to the Indian state-owned power equipment manufacturer following an international bidding.

As per the terms of the contract, BHEL will be responsible for the design, engineering, manufacturing, supply, installation and commissioning of electro-mechanical equipment for the hydropower plant. This will involve delivery of four Vertical Francis Turbines and Generator sets, each rated 225MW.

BHEL, in a statement, said: “This prestigious order is a testimony to BHEL’s proven technological prowess in executing power projects of this magnitude. The order will also provide a fillip to the company’s focus on globalization as a driver for growth.”

To be built along the Arun River in the Sankhuwasabha district, Arun-3 is anticipated to become the largest hydropower project in the Himalayan country. It is being developed by SAPDC, which was floated by India-based Satluj Jal Vidyut Nigam (SJVN), a joint venture between the Indian and Himachal Pradesh governments.

BHEL said that the Arun-3 hydropower project is expected to improve the current installed power capacity of Nepal to a significant extent and contribute in a major way to the country’s vision of tapping its huge hydro potential for accelerated economic growth.

The Indian firm said that its manufacturing plants in Bhopal, Bangalore, Rudrapur, Jhansi and other places will manufacture the turbines, generators, generator transformers, control system, bus ducts and other related equipment of the Arun-3 hydropower station.

BHEL’s Power Sector Northern Region will handle the erection and commissioning of the equipment, while its transmission business group will execute the 400 KV GIS of the Nepalese hydropower project.

Expected to be completed in the next five years, the Arun-3 hydropower project will feature a 70m tall concrete gravity dam and an underground cavern as its powerhouse.